The IV Regression Assumptions Include All of the Following with the Exception

question 20

Multiple Choice

The IV regression assumptions include all of the following with the exception of

• A)the error terms must be normally distributed.
• B)E(ui | W_1i,…, W_ri)= 0.
• C)Large outliers are unlikely: the X's, W's, Z's, and Y's all have nonzero, finite fourth moments.
• D)(X_1i,…, X_ki, W_1i,…,W_ri, Z_1i, … Z_mi, Y_i)are i.i.d. draws from their joint distribution.

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