Which of the following are consequences of measurement error in the dependent variable?
A) Smaller R2
B) Biased coefficient estimates
C) The bigger the measurement error, the bigger the variance of the error term.
D) Both A and C
Correct Answer:
Verified
Q5: We necessarily do not have an omitted
Q6: Adding more independent variables can reduce multicollinearity.
Q7: Perfect multicollinearity means all independent variables are
Q8: An omitted variable bias problem occurs when:
A)
Q9: When using an auxiliary equation to
Q11: If the measurement error is in the
Q12: In a case where there is multicollinearity
Q13: What should we do when we have
Q14: If we add more independent variables into
Q15: Including irrelevant independent variables into the model:
A)
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