Multiple Choice
Which of the following assumptions is known as exclusion restrictions?
A) The assumption that an instrumental variable is excluded from a regression model and is correlated with the error term
B) The assumption that an instrumental variable is excluded from a regression model and correlated with an exogenous explanatory variable
C) The assumption that an exogenous explanatory variable is excluded from a regression model and is uncorrelated with the error term
D) The assumption that an endogenous explanatory variable excluded from a regression model and is uncorrelated with the error term
Correct Answer:
Verified
Correct Answer:
Verified
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