Consider the Following Simple Regression Model Y = ₀

question 9

Multiple Choice

Consider the following simple regression model y = ₀ + ₁x₁ + u. The variable z is a poor instrument for x if _____.

• A)there is a high correlation between z and x
• B)there is a low correlation between z and x
• C)there is a high correlation between z and u
• D)there is a low correlation between z and u

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Definitions:

Nuclear Energy

Energy released during nuclear fission or fusion, especially when used to generate electricity.

Renewable Energy Resources

Natural sources of energy that can be replenished, including solar, wind, hydroelectric, biomass, and geothermal energy.

Oil Imports

The purchase of petroleum products or crude oil from foreign countries to meet a nation's energy needs and fuel its economy.

Pollution

The introduction of contaminants into the natural environment that cause adverse change, potentially harming human health and the ecosystem.