In 2SLS,how Should the Strength of an Instrument Be Measured

question 6

Multiple Choice

In 2SLS,how should the strength of an instrument be measured?

• A)an F-test on the first stage regression equation
• B)the p-value of the instrument's coefficient in the second stage regression
• C)the R² in the first stage regression equation
• D)an F-test on the second stage regression equation

---

Definitions:

Professional Standards

The established practices, behavior, and ethical guidelines that professionals are expected to adhere to in their occupation.

Liability Threat

A potential for being held responsible under law for injury or damage, posing a risk to individuals or organizations.

Ordinarily Prudent Person

A legal standard used to represent how the average person would responsibly act in a particular situation.

Professional Conduct

The standards of behavior and ethical practices expected of individuals in a professional context.