Idiosyncratic error is the error that occurs due to _____.
A)incorrect measurement of an economic variable
B)unobserved factors that affect the dependent variable and change over time
C)unobserved factors that affect the dependent variable and do not change over time
D)correlation between the independent variables

Question

Quizplus · Accepted Answer

Idiosyncratic error refers to the variation in the dependent variable caused by factors not included in the model, which are unique to each observation and can change over time.

Idiosyncratic Error Is the Error That Occurs Due to _____