Consider the Following Simple Regression Model: Y = ₀

question 17

Multiple Choice

Consider the following simple regression model: y = ₀ + ₁x₁ + u. Suppose z is an instrument for x. Which of the following conditions denotes instrument exogeneity?

• A)Cov(z,u) > 0
• B)Cov(z,x) > 0
• C) Cov(z,u) = 0
• D) Cov(z,x) = 0

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Definitions:

Maslow's Hierarchy

Maslow's Hierarchy is a psychological theory that ranks human needs in a pyramid, from basic physiological needs to self-actualization, emphasizing the importance of fulfilling foundational needs first.

Love/Belonging

A psychological need involving emotional relationships with others, feeling part of a group, and experiencing love and friendship, which is crucial for human wellbeing.

Motivation

The process that initiates, guides, and maintains goal-oriented behaviors, involving biological, emotional, social, and cognitive forces.

Internal Forces

Inside influences for change.