Measurement error

Errors in measuring an explanatory variable in a regression that leads to biases in estimated parameters.

Similar financial terms

Performance measurement
The calculation of the return realized by a money manager over some time interval.

Tracking error
In an indexing strategy, the difference between the performance of the benchmark and the replicating portfolio.

Standard error
In statistics, a measure of the possible error in an estimate.

Net errors and omissions
In balance of payments accounting, net errors and omissions record the statistical discrepancies that arise in gathering balance of payments data.

Benchmark error
Use of an inappropriate proxy for the true market portfolio.

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Consol

A type of bond that has an infinite life but is not issued in the U.S. capital markets.


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