In the Case of Errors-In-Variables Bias

question 37

Multiple Choice

In the case of errors-in-variables bias,

• A)maximum likelihood estimation must be used.
• B)the OLS estimator is consistent if the variance in the unobservable variable is relatively large compared to variance in the measurement error.
• C)the OLS estimator is consistent, but no longer unbiased in small samples.
• D)binary variables should not be used as independent variables.

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Definitions:

Streambed

The bottom surface of a stream or river channel where water flows, often consisting of sediment, rocks, and organic material.

Stream Transportation

The process by which streams and rivers carry sediment and other materials from one place to another.

Sediment Load

The amount of solid particles, primarily soil and rock, carried by a stream or river, which can affect water clarity and ecosystem health.

Discharge

The act of releasing or expelling a substance, especially the flow of a liquid from a container or the flow of a river into a larger body of water.