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For W to Be an Effective Control Variable in IV

Question 28

Multiple Choice

For W to be an effective control variable in IV estimation, the following condition must hold

A) E(u_i) = 0
B) E(u_i|Z_i,W_i) = E(u_i|W_i)
C) E(u_iu_j) ≠ 0
D) there must be an intercept in the regression

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