Multiple Choice
Exogeneity of an independent variable occurs when
A) an independent variable is correlated with the dependent variable.
B) the dependent variable is correlated with the error term.
C) an independent variable is uncorrelated with the error term.
D) the dependent variable is correlated with an independent variable.
Correct Answer:
Verified
Correct Answer:
Verified
Q2: Endogeneity of an independent variable presents a
Q3: The first-stage in an instrumental variable approach
Q4: What are simultaneous equations? How can instrumental
Q5: What are endogenous independent variables? How can
Q6: What is measurement error in an independent
Q7: Two-stage least squares can be used to<br>A)control
Q8: Simultaneous equations present a challenge because OLS
Q9: The first-stage in an instrumental variable approach
Q10: Two-stage least squares can be used to<br>A)account
Q11: Two-stage least squares can be used to<br>A)identify