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Measurement Error
(redirected from Observational error)

    Also found in: Wikipedia 0.56 sec.
Measurement error
Errors in measuring an explanatory variable in a regression, which leads to biases in estimated parameters.
Measurement Error
The difference between the value of some quantity and the value obtained by measuring it. It is nearly impossible to attain accurate measurements all the time, especially when one uses a single means of calculation. For this reason, when measuring the value of a company or asset, many analysts will check and double-check their work, and perhaps calculate the value using a different method, in order to ensure accuracy. See also: Audit, Due diligence.


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