Errors-In-Variables Bias

question 61

Multiple Choice

Errors-in-variables bias

• A)is only a problem in small samples.
• B)arises from error in the measurement of the independent variable.
• C)becomes larger as the variance in the explanatory variable increases relative to the error variance.
• D)is particularly severe when the source is an error in the measurement of the dependent variable.

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Definitions:

Autarky

Autarky is an economic policy or situation in which a country is self-sufficient and does not engage in international trade.

Comparative Advantage

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than competitors.

Exports

Goods or services sent from one country to another for sale or trade.

Wheat

A cereal grain that is a staple food in many parts of the world, used to make products like flour, bread, and pasta.