Multiple Choice
Which of the following is true of measurement error?
A) If measurement error in a dependent variable has zero mean, the ordinary least squares estimators for the intercept are biased and inconsistent.
B) If measurement error in an independent variable is uncorrelated with the variable, the ordinary least squares estimators are unbiased.
C) If measurement error in an independent variable is uncorrelated with other independent variables, all estimators are biased.
D) If measurement error in a dependent variable is correlated with the independent variables, the ordinary least squares estimators are unbiased.
Correct Answer:

Verified
Correct Answer:
Verified
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