These developments imply that event studies that ignore expectation effects may misestimate
the impact of asset purchases.
From the point of view of asset valuation, the assumption of normality for market returns could produce misestimates
of the risk-return relationship and affect the composition of efficient portfolios.
The likelihood that DOE will misestimate
costs, along with the practice of charging fees to cover the estimated costs, may lead to biases in the projects that receive guarantees.
In an economy operating under imperfect knowledge of the economy's future prospects, there is always the possibility that the central bank will seriously misestimate
the natural real interest rate.
For investors, two of the most important factors in evaluating life settlements are longevity risk and the potential for medical examiners to systematically misestimate
As a result, Manager has no incentive to misestimate
the values of different securities.
Second, if we attempt to model group-level effects with OLS by attaching institutional characteristics to individuals, we will not accurately capture the effect of these characteristics and will misestimate
their standard errors (Ethington, 1997).
everything because you can see for 100km and it looks like you could walk it.
And, while they did not significantly misestimate
the number of health care providers who are psychologists in this study, in a previous study (Rosenthal, McKnight, & Price, 2001) they did.
At lower velocities, drivers seemed to misestimate
the need to brake because of the greater distance between vehicles.
For in that case, any shortage of reserves relative to banks' demand--due, for example, to a misestimate
of the size of open market operations required to stabilize the funds rate on a given day--that results in an increase in the federal funds rate would automatically raise the interest rate paid on balances held with the Fed as well.
I observed that people gripped by fear misestimate
risks, so informing them of the magnitude of risks might have little benefit, as long as they remain fearful.
If we limit ourselves to a restricted range of multiple regression models, we might limit unnecessarily the range of dependent variables we model or misestimate
the effects of our independent variables.
Several studies have observed that executives misestimate
consumer preference for both price and nonprice product or service attributes (cf.
Furthermore, the mismeasurement of any independent variable in the direct regression potentially biases each of the other regression coefficients in the equation, resulting in a "severe misestimate