If Only One of the Independent Variables Has a Measurement

question 15

Multiple Choice

If only one of the independent variables has a measurement error, which of the following is generally true under the classical errors-in-variables (CEV) assumption?

• A)The OLS estimators for coefficients on all other independent variables are also biased towards zero.
• B)The OLS estimators for coefficients on all other independent variables are still unbiased and consistent.
• C)The OLS estimators for coefficients on all other independent variables are also biased and inconsistent.
• D)The OLS estimators for coefficients on all other independent variables are biased but consistent.

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