Question: Suppose that the population regression function can be written as: y=0+1x1+u Now suppose that the analyst estimates the following sample regression function: y=0+1x1+u, where x1=x1+e

Suppose that the population regression function can be written as: y=0+1x1+u

Suppose that the population regression function can be written as: y=0+1x1+u Now suppose that the analyst estimates the following sample regression function: y=0+1x1+u, where x1=x1+e and e is a random measurement error such that: E[ex1]=0 and E[ux1]=0

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