Question: Economic variables are often measured with error. Does this mean that regression analysis is unreliable? Explain. 9 . 4 Suppose that a state offered voluntary
Economic variables are often measured with error. Does this mean that regression analysis is unreliable? Explain.
Suppose that a state offered voluntary standardized tests to all its third graders and that the resulting data were used in a study of class size on student performance. Explain how sample selection bias might invalidate the results.
A researcher estimates the effect on crime rates of spending on police by using citylevel data. Explain how simultaneous causality might invalidate the results.
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