Which of the Following Assumptions Is Required for Two-Stage Least

question 16

Multiple Choice

Which of the following assumptions is required for two-stage least squares estimation method?

• A)There are perfect linear relationships among the instrumental variables.
• B)There is strong correlation between each instrumental variable and the error term.
• C)The conditional variance of the error term depends on an exogenous explanatory variable.
• D)The error term has zero mean.

---

Definitions:

E-commerce System

An online platform or software application that enables buying and selling of goods and services over the internet.

Opendoor.Com

Opendoor.Com is an online real estate platform that simplifies the process of buying and selling homes through technology and direct home buying services.

Knock.Com

A real estate technology company that makes buying or selling homes more convenient by streamlining various processes.

Realtor.Com

Realtor.com is a real estate listings website that provides comprehensive information about homes for sale, apartments for rent, and insights about properties and neighborhoods to help users make informed decisions.