Consider the Following Simple Regression Model Y = ₀

question 2

Multiple Choice

Consider the following simple regression model y = ₀ + ₁x₁ + u. Suppose z is an instrument for x. if Cov(z,u) = 0 and Cov(z,x) 0, the value of ₁ in terms of population covariances is _____.

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Definitions:

Normal Balance

Normal Balance is the side (debit or credit) where increases to the account are recorded, depending on the account type.

Permanent/Temporary

Describes accounts in financial reporting; permanent accounts show ongoing financial status, while temporary accounts track revenues, expenses, and dividends over a specific period.

Normal Balance

The side (debit or credit) of an account that increases its balance, reflecting the account's role in the accounting equation.

Financial Statement

A formal record of the financial activities and position of a business, individual, or other entity, detailing assets, liabilities, revenue, and expenses over a specific period.