MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN: 9781119256830
Author: Amos Gilat
Publisher: John Wiley & Sons Inc
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Question
Vi = B1 + B₂x2i + B3X3i + ei
What properties must a variable z; have to be considered a valid instrument for x3; in
the above equation?
Select one:
○a.
E(e₁|zi) = 0 and cov(Z₁, X3i) = 0
O b.
E(zile;) = 0 and cov(Z₁, X3i) = 0
O c. E(eizi) = 0 and cov(Z₁, X3i) ‡ 0
O d. E(zilei) = 0 and cov(Z₁, X3i) ‡ 0
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Transcribed Image Text:Vi = B1 + B₂x2i + B3X3i + ei What properties must a variable z; have to be considered a valid instrument for x3; in the above equation? Select one: ○a. E(e₁|zi) = 0 and cov(Z₁, X3i) = 0 O b. E(zile;) = 0 and cov(Z₁, X3i) = 0 O c. E(eizi) = 0 and cov(Z₁, X3i) ‡ 0 O d. E(zilei) = 0 and cov(Z₁, X3i) ‡ 0
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