In the case of errors-in-variables bias, the precise size and direction of the bias depend on A)the sample size in general. B)the correlation between the measured variable and the measurement error. C)the size of the regression R². D)whether the good in question is price elastic.

Question

Quizplus · Accepted Answer

Errors-in-variables bias depends on the correlation between the measured variable and the measurement error. Other factors like sample size, regression R², and price elasticity do not have a significant impact on this bias.

In the Case of Errors-In-Variables Bias, the Precise Size and Direction