The Rule-Of-Thumb for Checking for Weak Instruments Is as Follows

question 6

Multiple Choice

The rule-of-thumb for checking for weak instruments is as follows: for the case of a single endogenous regressor,

• A)a first stage F must be statistically significant to indicate a strong instrument.
• B)a first stage F > 1.96 indicates that the instruments are weak.
• C)the t-statistic on each of the instruments must exceed at least 1.64.
• D)a first stage F < 10 indicates that the instruments are weak.

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Definitions:

Fahrenheit

A temperature measurement system where water's freezing point is at 32 degrees and its boiling point is at 212 degrees, given standard atmospheric conditions.

Celsius

A scale and unit of measurement for temperature where 0 degrees is the freezing point and 100 degrees is the boiling point of water under standard atmospheric conditions.

Body Temperature

The measure of the body's ability to generate and get rid of heat, essential for the proper function of enzymes and bodily processes.

Boiling

The rapid vaporization of a liquid when it is heated to its boiling point, the temperature at which it changes phase from liquid to gas.