Multiple Choice
Consider the following simple regression model y = 0 +
1x1 + u. Suppose z is an instrument for x. if Cov(z,u) = 0 and Cov(z,x)
0, the value of
1 in terms of population covariances is _____.
A)
B)
C) Cov(z,u)
D) Cov(z,x)
Correct Answer:

Verified
Correct Answer:
Verified
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