For W to Be an Effective Control Variable in IV

question 28

Multiple Choice

For W to be an effective control variable in IV estimation, the following condition must hold

• A)E(u_i)= 0
• B)E(u_i|Z_i,W_i)= E(u_i|W_i)
• C)E(u_iu_j)≠ 0
• D)there must be an intercept in the regression

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Definitions:

Asian Countries

Nations located on the continent of Asia, including, but not limited to, China, India, Japan, and South Korea.

United States

A country in North America consisting of 50 states and a federal district, known for its significant cultural and economic influence globally.

Group Size

A factor that affects the dynamics and outcomes of social interactions, influencing behavior, communication, and cohesion within groups.

Ally

A person or entity that provides support or assistance, often in a partnership or coalition.