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.

---

Definitions:

Font Size

The measurement that specifies the size of a typeface in points, determining how large text appears on a page or screen.

Concentration

The mental effort directed towards a specific object, subject, or activity with the exclusion of other thoughts.

Security Alarm

A system designed to detect intrusion or unauthorized entry into a building, area, or system for the purpose of security.

Difficult Customer

A customer who presents challenges or issues that are beyond typical expectations due to their demands, behavior, or needs.