Measurement Errors, Linear Regression, Variance, Correlation.
model: A linear model of two variables x_2 and x_3 (Image by Author) As before, y, 1, x_2, x*_3, and ϵ are column vectors of size [n x 1]. This time, we’ll assume that y is measured exactly but x*_3 contains a measurement error. Specifically, x*_3 represents the exact value of the variable but the