The Conditions for a Valid Instruments Do Not Include the Following

question 15

Multiple Choice

The conditions for a valid instruments do not include the following:

• A)each instrument must be uncorrelated with the error term.
• B)each one of the instrumental variables must be normally distributed.
• C)at least one of the instruments must enter the population regression of X on the Zs and the Ws.
• D)perfect multicollinearity between the predicted endogenous variables and the exogenous variables must be ruled out.

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Definitions:

Individual Differences

Variations among individuals in their behavior, cognition, personality, and other attributes, which distinguish one person from another.

Consumer Behavior

The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society.

Marketing

The method of marketing, selling, and distributing goods or services, encompassing market analysis and promotion activities.

Selective Distortion

The process by which individuals perceive and interpret information in a way that is biased by their previously held beliefs.