Errors-In-Variables Bias
A)is Present When the Probability Limit of the OLS

question 47

Multiple Choice

Errors-in-variables bias

• A)is present when the probability limit of the OLS estimator is given by \(\hat { \beta } _ { 1 }\stackrel { p } { \longrightarrow }
• \beta _ { 1 } + \frac { \sigma _ { x } ^ { 2 } } { \sigma _ { x } ^ { 2 } + \sigma _ { w } ^ { 2 } }\)
• B)arises when an independent variable is measured imprecisely.
• C)arises when the dependent variable is measured imprecisely.
• D)always occurs in economics since economic data is never precisely measured.

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Definitions:

Categories of Definitions

Groups or classifications of definitions according to their subjects, uses, or characteristics.

Control Limits

Statistical boundaries in process control that indicate the acceptable range of variation for a process to remain in a state of control.

Operator

An individual or entity responsible for controlling machinery or systems, often within industrial or telecommunications settings.

Philip Crosby

An influential quality management expert best known for his philosophy that organizations should aim for "zero defects" to improve quality.