Multiple Choice
If the measurement error is in the independent variable, then
A) We don't need to worry about bias, the measurement error will be reflected in the error term.
B) The bigger the measurement error, the bigger the variance of the error term.
C) We will have a case of attenuation bias, where the coefficient will be closer to 0 than it should be.
D) We will have a case of attenuation bias, where the coefficient is larger than it should be.
Correct Answer:
Verified
Correct Answer:
Verified
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