If an Explanatory Variable Is Strictly Exogenous It Implies That

question 6

Multiple Choice

If an explanatory variable is strictly exogenous it implies that:

• A)changes in the lag of the variable does not affect future values of the dependent variable.
• B)the variable is correlated with the error term in all future time periods.
• C)the variable cannot react to what has happened to the dependent variable in the past.
• D)the conditional mean of the error term given the variable is zero.

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Definitions:

Ethnic Differences

Variations in practices, cultures, norms, and values among different ethnic groups within a larger community or society.

Arthur Jensen

A psychologist known for his work in the study of intelligence and his controversial views on the influences of race on intelligence.

Philippe Rushton

A controversial psychologist known for his research on race, intelligence, and genetic heritability.

Genetic Factors

Genetic factors involve the roles that genes play in determining physical and psychological traits, including susceptibility to certain diseases or conditions.