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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