The Conditions for a Valid Instruments Do Not Include the Following

question 15

Multiple Choice

The conditions for a valid instruments do not include the following:

• A)each instrument must be uncorrelated with the error term.
• B)each one of the instrumental variables must be normally distributed.
• C)at least one of the instruments must enter the population regression of X on the Zs and the Ws.
• D)perfect multicollinearity between the predicted endogenous variables and the exogenous variables must be ruled out.

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