Measurement Error in an Independent Variable Occurs When
A)the Dependent $x _ { 1 i }$

Multiple Choice

Measurement error in an independent variable occurs when

A) the dependent variable is uncorrelated with the error term.
B) the true value of the independent variable is observed.
C) the true value of the left hand side variable is not known.
D) the variable $x _ { 1 i }$ is measured with error such that
$x _ { 1 i } = x _ { 1 i } ^ { * } + u _ { 1 i } \text { and } x _ { 1 i } ^ { * }$ is the true value of the variable.