Consider the Following Simple Regression Model: Y = β₀+ β₁x₁

question 17

Multiple Choice

Consider the following simple regression model: y = β₀+ β₁x₁+ u.In order to obtain consistent estimators of β₀and β₁,when x and u are correlated,a new variable z is introduced into the model which satisfies the following two conditions: Cov(z,x) ≠0 and Cov (z,u) =0.The variable z is called a(n) _____ variable.

• A)dummy
• B)instrumental
• C)lagged dependent variable
• D)random

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Definitions:

Child Molesters

Individuals who sexually abuse children, often involving activities without consent or understanding of the child.

Victims

Individuals or entities that suffer harm, loss, or hardship due to actions or events beyond their control.

Relatives

Persons connected by blood or marriage.

Prison Rape

Sexual assault and abuse that occurs within the prison system, often perpetuated by inmates or staff, marked by a significant power imbalance.