An Errors-In-Variables Analysis of Managerial Role Performance

Abstract

Abstract A linear model with measurement error in the independent variables is considered. An errors-in-variables procedure is presented that provides estimators of the coefficients and their variances. If the dependent variable has multiple measures, the total variance of the dependent variable can be decomposed into measurement error, variance of true values explained by the true values of the independent variables and variance of true values not explained by the model. An application to the measurement of role performance is presented.