Errors-In-Variables Bias
A)is Present When the Probability Limit of the OLS

Multiple Choice

Errors-in-variables bias

A) is present when the probability limit of the OLS estimator is given by
$$\hat { \beta } _ { 1 } \rightarrow \beta _ { 1 } + \frac { \sigma _ { x } ^ { 2 } } { \sigma _ { x } ^ { 2 } + \sigma _ { w } ^ { 2 } }$$
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.