Multiple Choice
Which of the following is true about weak instruments?
A) A weak instrument is correlated with the error term.
B) The larger the sample size, the bigger the problem (bias) caused by the use of a weak instrument.
C) A weak instrument is an instrument that does a poor job of explaining X.
D) A weak instrument fails the exclusion condition.
Correct Answer:
Verified
Correct Answer:
Verified
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