Consider the Following Simple Regression Model: Y = ₀

question 13

Multiple Choice

Consider the following simple regression model: y = ₀ + ₁x₁ + u. Suppose z is an instrument for x. Which of the following conditions denotes instrument exogeneity?

• A)Cov(z,u) > 0
• B)Cov(z,x) > 0
• C)Cov(z,u) = 0
• D)Cov(z,x) = 0

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Definitions:

Biological Model

A perspective in psychology and medicine that attributes psychological disorders and behaviors to biological factors such as genetic influences, brain chemistry, and anatomy.

Psychological Disorders

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Bipolar Disorder

A mental health condition characterized by significant mood swings, including manic (high) and depressive (low) episodes.

Depression

A common and serious mood disorder that negatively affects how you feel, think, and handle daily activities, often involving persistent sadness and loss of interest.