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Suppose that the true model is Q=B₂X+u where u has zero mean and constant variance 2. However, Q is measured with measur
Posted: Wed Jul 06, 2022 12:14 pm
by answerhappygod
- Suppose That The True Model Is Q B X U Where U Has Zero Mean And Constant Variance 2 However Q Is Measured With Measur 1 (17.69 KiB) Viewed 15 times
Suppose that the true model is Q=B₂X+u where u has zero mean and constant variance 2. However, Q is measured with measurement error t, and the observed independent variable is Y=Q+u Assume that has zero mean and constant variance 5, and it is distributed independently of u. Q and X. Answer the following two
questions about the consequences of the measurement error: 1. The bias of the OLS estimator for B2 is 2. The variance of the OLS estimator for dy is increased by a factor of