Linear Modelingmedium
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In a linear regression analysis, suppose the independent variable is measured perfectly, but the dependent variable is measured with a random error (so , where has mean 0 and is independent of and the regression error term ). If we fit a regression of on , what is the effect on the estimated slope and its standard error?
In a linear regression analysis, suppose the independent variable is measured perfectly, but the dependent variable is measured with a random error (so , where has mean 0 and is independent of and the regression error term ). If we fit a regression of on , what is the effect on the estimated slope and its standard error?