Consider the Following Simple Regression Model Y = ₀

question 5

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 relevance?

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

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Definitions:

Binomial Probability

The probability of achieving a specific number of successes in a fixed number of independent trials, each with two possible outcomes.

Observational Study

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A display area in zoos or wildlife parks dedicated to showcasing various species of primates.

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An accredited zoo located in Sacramento, California, known for its conservation efforts, diverse animal exhibits, and educational programs.