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:

Intentionality

The quality of being deliberate or purposeful in actions, thoughts, or communications.

Coordination

The ability to use different parts of the body together smoothly and efficiently.

Secondary Circular Reactions

A stage in Piaget's theory of cognitive development, where infants repeat actions to trigger reactions in their environment, aiding in the understanding of cause and effect.

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or otherwise sensed.