Wednesday, 26 March 2014

Eco-Stats Lab, March 2014 - Measurement Error modeling using SIMEX

Measurement Error modeling using SIMEX

Date: 28th March 2-3pm
Venue: Computer Lab Room 640


Measurement Error Modeling

  • Measurement error or error-in-variables arises whenever we have imprecise measurements on our predictor variables (or covariates).
  • If X is the true covariate and U is the measurement error, then what we observe is
    W = X + U:
  • In a simple regression, we usually assume that our covariates are measured precisely or they represent the true covariate values quite well. But what happens to our estimates if our covariates have measurement error?