By finding the pseudo-range of an additional fourth satellite for precise position calculation, the time error can also be estimated.
Therefore, by having the pseudoranges and the locations of four satellites, the actual receiver's position along the x, y, z axes and the time error
The reason we speak of pseudo-ranges rather than ranges, is precisely this "contamination" with unknown receiver clock offset.
Following the laws of error propagation, neither the receiver position nor the clock offset are computed exactly, but rather estimated through a least squares adjustment procedure known from geodesy.
[2] Pseudorange calculations therefore use the signals of four satellites to compute the receiver's location and the clock error.
If positional calculation was done using this clock and only using three satellites, just standing still the GPS would indicate that you are traveling at a speed in excess of 300 meters per second, (over 1000 km/hour or 600 miles an hour).