Consider the Following Simple Regression Model Y = ₀

question 23

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 relevance?

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

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Definitions:

Program

A set of instructions that a computer follows to perform specific tasks or operations.

Operating System Program

An operating system (OS) manages computer hardware and software resources and provides common services for computer programs.

Application Program

A computer software designed to help the user perform singular or multiple related specific tasks.

Technology

The application of scientific knowledge for practical purposes, especially in industry and the creation of devices, systems, or methods.