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Consider the Following Simple Regression Model: Y = 0

Question 19

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Consider the following simple regression model: y = Consider the following simple regression model: y = <sub>0</sub> + <sub>1</sub>x<sub>1</sub> + u. In order to obtain consistent estimators of <sub>0</sub> and <sub>1</sub>, when x and u are correlated, a new variable z is introduced into the model which satisfies the following two conditions: Cov(z,x) 0 and Cov (z,u) = 0. The variable z is called a(n) _____ variable. A) dummy B) instrumental C) lagged dependent D) random 0 + Consider the following simple regression model: y = <sub>0</sub> + <sub>1</sub>x<sub>1</sub> + u. In order to obtain consistent estimators of <sub>0</sub> and <sub>1</sub>, when x and u are correlated, a new variable z is introduced into the model which satisfies the following two conditions: Cov(z,x) 0 and Cov (z,u) = 0. The variable z is called a(n) _____ variable. A) dummy B) instrumental C) lagged dependent D) random 1x1 + u. In order to obtain consistent estimators of Consider the following simple regression model: y = <sub>0</sub> + <sub>1</sub>x<sub>1</sub> + u. In order to obtain consistent estimators of <sub>0</sub> and <sub>1</sub>, when x and u are correlated, a new variable z is introduced into the model which satisfies the following two conditions: Cov(z,x) 0 and Cov (z,u) = 0. The variable z is called a(n) _____ variable. A) dummy B) instrumental C) lagged dependent D) random 0 and Consider the following simple regression model: y = <sub>0</sub> + <sub>1</sub>x<sub>1</sub> + u. In order to obtain consistent estimators of <sub>0</sub> and <sub>1</sub>, when x and u are correlated, a new variable z is introduced into the model which satisfies the following two conditions: Cov(z,x) 0 and Cov (z,u) = 0. The variable z is called a(n) _____ variable. A) dummy B) instrumental C) lagged dependent D) random 1, when x and u are correlated, a new variable z is introduced into the model which satisfies the following two conditions: Cov(z,x) Consider the following simple regression model: y = <sub>0</sub> + <sub>1</sub>x<sub>1</sub> + u. In order to obtain consistent estimators of <sub>0</sub> and <sub>1</sub>, when x and u are correlated, a new variable z is introduced into the model which satisfies the following two conditions: Cov(z,x) 0 and Cov (z,u) = 0. The variable z is called a(n) _____ variable. A) dummy B) instrumental C) lagged dependent D) random 0 and Cov (z,u) = 0. The variable z is called a(n) _____ variable.


A) dummy
B) instrumental
C) lagged dependent
D) random

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