Which of the Following Highlights a Requirement of a Good

question 16

Multiple Choice

Which of the following highlights a requirement of a good instrumental variable?

• A)It should be included in and endogenous to the equation of interest.
• B)It should be included in and exogenous to the equation of interest.
• C)It should be omitted from and exogenous to the equation of interest.
• D)It should be omitted from and endogenous to the equation of interest.

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Definitions:

Electric Charge

A physical property of matter that causes it to experience a force when placed in an electromagnetic field.

Nucleus

The central and most important part of an atom, or a cell's organelle that contains genetic material.

Abundant Elements

Chemical elements that occur in large quantities in the Earth's atmosphere, crust, or oceans, or in the universe at large.

Human Body

The entire structure of a human being encompassing physical, biological, and chemical processes that work together to maintain life.