A Key Step in Using Instrument Variable Methods Is to

question 4

Multiple Choice

A key step in using instrument variable methods is to

• A)find one or more exogenous variables that influence your dependent variable.
• B)decrease the number of lags in the regression equation.
• C)conduct interviews to determine how accurate your data really is.
• D)run the regression on two different computers to see if the results differ.
• E) eliminate the dependent variable.

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Definitions:

Positive Illusions

Unrealistically favorable attitudes people have towards themselves, their situations, or their future prospects.

Relational Bias

The tendency to perceive or judge in favor of those with whom one has a close relationship or to whom one feels similar.

Self-Disclosure

The sharing of information about oneself.

Xiao

In Confucian philosophy, the virtue of filial piety or respect towards one’s parents and ancestors.