Which of the Following Assumptions Is Known as Exclusion Restrictions

question 24

Multiple Choice

Which of the following assumptions is known as exclusion restrictions?

• A)The assumption that an instrumental variable is excluded from a regression model and is correlated with the error term.
• B)The assumption that an instrumental variable is excluded from a regression model and is correlated with an exogenous explanatory variable.
• C)The assumption that an exogenous explanatory variable is excluded from a regression model and is uncorrelated with the error term.
• D)The assumption that an endogenous explanatory variable excluded from a regression model and is uncorrelated with the error term.

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