Instrumental variables, Instrumental variables:

Instrumental variables

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Reference no: EM13896709

Instrumental variables:

a. are only valid if they are correlated with the error term.

b. are only valid if they are uncorrelated with the dependent variable.

c. are only valid if they are uncorrelated with the explanatory variables.

d. are strong if they are highly correlated with the error term.

e. none of the above

Reference no: EM13896709

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