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:

Random Assignment

The process of allocating subjects randomly to experimental and control groups in a study to ensure that each participant has an equal chance of being assigned to any group, thus reducing bias.

Correlational Studies

Studies in which the investigator analyzes the relationships among variables that were in place before the study, without manipulating those variables.

Placebo Effects

Observable or measurable changes in health or behavior resulting from the administration of a placebo, demonstrating the power of belief and expectation in the healing process.

Double-blind

A study design in which neither the participants nor the experimenters know who is receiving a particular treatment, to prevent bias in the results.