Question: 2. Consider the linear model y, = BX, + 8, cov (X,, &, ) =0 Suppose that y, is measured with error, i. e. the

2. Consider the linear model y, = BX, + 8, cov (X,, &, ) =0 Suppose that y, is measured with error, i. e. the data under study consist of x,,y; such that y, = y, +n cov (x,1) = cov (6,n) = 0 What is the relationship between B and the regression coefficient in the linear model yi = XX, +5, cov (x,,51 ) = 0 Does your answer imply that measurement error is irrelevant to the empirical analyst, in this case
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