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Consider the Following Simple Regression Model Y=β0 + β1x1

Question 20

Multiple Choice

Consider the following simple regression model y=β0 + β1x1 + u.Suppose z is an instrument for x.if Cov(z,u) = 0 and Cov(z,x) ≠ 0,the value of β1in terms of population covariances is _____.


A) Consider the following simple regression model y=β<sub>0</sub> + β<sub>1</sub>x<sub>1</sub> + u.Suppose z is an instrument for x.if Cov(z,u) = 0 and Cov(z,x) ≠ 0,the value of β<sub>1</sub>in terms of population covariances is _____. A) B) C) Cov(z,u) D) Cov(z,x)
B) Consider the following simple regression model y=β<sub>0</sub> + β<sub>1</sub>x<sub>1</sub> + u.Suppose z is an instrument for x.if Cov(z,u) = 0 and Cov(z,x) ≠ 0,the value of β<sub>1</sub>in terms of population covariances is _____. A) B) C) Cov(z,u) D) Cov(z,x)
C) Cov(z,u)
D) Cov(z,x)

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