Instrument Relevance A $X$ And $u$ Are Correlated And $Z$ And $u$ Are Not Correlated

question 27

Short Answer

Instrument relevance a. means that the instrument is one of the determinants of the dependent variable.
b. is the same as instrument exogeneity.
c. means that some of the variance in the regressor is related to variation in the instrument.
d. is not possible since $X$ and $u$ are correlated and $Z$ and $u$ are not correlated.

Differentiate between the equity method and the cost method of accounting for long-term investments.

Identify the presentation and effects of consolidated financial statements.

Recognize how cash dividends received are accounted for under the equity method.

Comprehend the accounting for long-term investments using the cost method.

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Definitions:

Anaphase I

A stage in meiosis I where homologous chromosomes separate and are pulled to opposite poles of the cell, unlike in mitosis where sister chromatids separate.

Reproductive Strategy

A method or approach employed by species to ensure their continuation through the production of offspring.

Sexual Reproduction

A biological process by which new individual organisms are produced through the combination of genetic materials from two different cells.

Asexual Reproduction

A mode of reproduction by which offspring arise from a single organism, and inherit the genes of that parent only; does not involve the joining of gametes.