Analysis of the prediction problem in linear regression

In a regression relationship the independent variables are frequently measured with error when measurements are made in the field under less controlled conditions, or when accurate instruments are not available. This paper deals with the prediction problem for the above situation. The integrated mean square error of prediction (IMSE) is developed as a measure of the effect of the errors in the independent variables on the predicted values. The IMSE may be used for assessing the severeness of measurement errors as well as for comparing competing estimators. An example from the area of work measurement is analyzed.