The IV Regression Assumptions Include All of the Following with the Exception

question 37

Short Answer

The IV regression assumptions include all of the following with the exception of a. the error terms must be normally distributed.
b. $E \left( u _ { i } \mid W _ { 1 i } , \ldots , W _ { r i } \right) = 0$ .
c. Large outliers are unlikely: the $X$ 's, $W$ 's, $Z$ 's, and $Y$ 's all have nonzero, finite fourth moments.
d. $\left( X _ { 1 i } , \ldots , X _ { k i } , W _ { 1 i } , \ldots , W _ { r i } , Z _ { 1 i } , \ldots Z _ { m i } , Y _ { i } \right)$ are i.i.d. draws from their joint distribution.

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Definitions:

Superstitious Behaviour

Actions based on irrational beliefs that certain behaviors or rituals can influence unrelated outcomes or events.

Positive Reinforcement

A process in which presenting a positive stimulus after a desired behavior increases the likelihood of that behavior occurring again.

Observational Learning

The process of acquiring new behaviors or knowledge by watching and imitating the actions of others, also known as social learning or modeling.

Model

In science and engineering, a model is an abstract representation meant to study, simulate, or explain the behavior of real systems or phenomena.