If the Measurement Error Is in the Independent Variable, Then

question 19

Multiple Choice

If the measurement error is in the independent variable, then

• A) We don't need to worry about bias, the measurement error will be reflected in the error term.
• B) The bigger the measurement error, the bigger the variance of the error term.
• C) We will have a case of attenuation bias, where the coefficient will be closer to 0 than it should be.
• D) We will have a case of attenuation bias, where the coefficient is larger than it should be.

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