  The main aim of this paper is to inspect the properties of survey based on
households inflation expectations, conducted by Reserve Bank of India. It is
theorized that the respondents answers are exaggerated by extreme response
bias. Latent class analysis has been hailed as a promising technique for
studying measurement errors in surveys, because the model produces estimates of
the error rates associated with a given question of the questionnaire. I have
identified a model with optimum performance and hence categorize the objective
as well as reliable classifiers or otherwise.
