In Order for a Variable to Be a Valid Instrumental

question 46

Multiple Choice

In order for a variable to be a valid instrumental variable it needs to satisfy which two conditions?

• A) Exogenous and consistent
• B) Efficient and uncorrelated
• C) Relevant and exogenous
• D) Relevant and efficient

---

Definitions:

Validity

The extent to which a concept, conclusion, or measurement is well-founded and corresponds accurately to the real world.

Case Studies

In-depth analyses of a single event, situation, or individual to explore causation and find underlying principles.

Hypotheses

Proposed explanations made on the basis of limited evidence as a starting point for further investigation.

Observational Studies

Research methods where the investigator passively observes and records behavior without influencing the subjects.