What Should You Conclude If You Get an F-Statistic of 8.3

question 18

Multiple Choice

What should you conclude if you get an F-statistic of 8.3 when testing the strength of an instrument?

• A)it depends on the degrees of freedom and critical value of F
• B)do not reject H₀;conclude that the instrument is weak and should not be used in 2SLS.
• C)reject H₀;conclude the instrument is strong and proceed with 2SLS
• D)do not reject H₀;conclude the instrument is strong and use it in 2SLS

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