An Instrumental Variable Is a Variable That Is Correlated

question 12

Multiple Choice

An instrumental variable is a variable that is correlated

• A)with the endogenous right hand side variable but not correlated with the error term.
• B)with the error term but not correlated with the endogenous right hand side variable.
• C)with both the error term and the endogenous right hand side variable.
• D)with both the endogenous right hand side variable and with another independent variable.

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Definitions:

Empathic

Having the ability to understand and share the feelings of another.

Cultural Interpretation

The act of understanding or explaining the meanings, beliefs, practices, and artifacts of one culture in terms relevant to another.

Mexican-American

Refers to individuals of Mexican origin or descent who are living in the United States, encompassing a broad cultural and ethnic group.

Hispanic Subcultures

Diverse groups within the larger Hispanic community, each with distinct cultural practices, traditions, and identities.