Potential Remedies for When Your Model Suffers from the Endogeneity

question 31

Multiple Choice

Potential remedies for when your model suffers from the endogeneity problem include all of the following except what?

• A) Gather (additional) data on a possible instrumental variable.
• B) Gather (additional) longitudinal data to allow for a fixed effect approach.
• C) Gather (additional) control variables that would limit the endogeneity concern.
• D) Check if the residuals from your regression are uncorrelated with your treatment.

---

Definitions:

Retired the Bonds

Retired the bonds means that a company has paid off the principal amount of the bonds before or at maturity, effectively extinguishing the debt.

Contract Rate

A predefined interest rate agreed upon in a financial contract which determines the interest payments for the duration of the contract.

Semiannually

A period occurring twice a year, typically used in the context of payments, interest accrual, or reporting.

Retired the Bonds

The process by which a company pays off or redeems its outstanding bonds before their maturity date, removing the liability from its balance sheet.