Multiple Choice
If only one of the independent variables has a measurement error, which of the following is generally true under the classical errors-in-variables (CEV) assumption?
A) The OLS estimators for coefficients on all other independent variables are also biased towards zero.
B) The OLS estimators for coefficients on all other independent variables are still unbiased and consistent.
C) The OLS estimators for coefficients on all other independent variables are also biased and inconsistent.
D) The OLS estimators for coefficients on all other independent variables are biased but consistent.
Correct Answer:

Verified
Correct Answer:
Verified
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