The Two Conditions for a Valid Instrument Are

question 14

Multiple Choice

The two conditions for a valid instrument are

• A)corr(Z_i, X_i)= 0 and corr(Z_i, u_i)≠ 0.
• B)corr(Z_i, X_i)= 0 and corr(Z_i, u_i)= 0.
• C)corr(Z_i, X_i)≠ 0 and corr(Z_i, u_i)= 0.
• D)corr(Z_i, X_i)≠ 0 and corr(Z_i, u_i)≠ 0.

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Definitions:

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A theory positing that behavior is motivated by the desire to reduce internal drives, such as hunger or thirst, to achieve a state of homeostasis.

Hypothalamus

A small but crucial part of the brain responsible for hormonal control, regulation of body temperature, and maintaining homeostasis.

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A measure of the amount of glucose present in the blood, which is a critical aspect of metabolic health and is closely regulated in the human body.

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Proteins located in the liver that bind substances like hormones and drugs, playing a crucial role in metabolism and detoxification.