In Words, Why Can Utilizing an Instrumental Variable Be an Effective

question 8

Multiple Choice

In words, why can utilizing an instrumental variable be an effective means toward identifying the causal effect of a treatment on an outcome?

• A) It allows you to identify the causal effect of the treatment by controlling for unobservables that may crucially affect the outcome.
• B) It allows you to identify the causal effect of the treatment by using only variation in the treatment that is correlated with unobservables that affect the outcome.
• C) It allows you to identify the causal effect of the treatment by using only variation in the treatment that isn't correlated with unobservables that affect the outcome.
• D) None of the answers is correct.

---

Definitions:

Attitudes

Perceptions or opinions about organizational characteristics.

Organizational Context

The combination of internal and external factors, including the regulatory environment, competition, and corporate culture, that influence an organization's activities and strategies.

Costs Of Turnover

Refers to the financial impact incurred by an organization due to the departure of an employee, encompassing separation, replacement, and training costs for new hires.

Termination

The process of ending an employee's contract with the organization, which can be voluntary or involuntary.