Weak Instruments Are a Problem Because

question 4

Multiple Choice

Weak instruments are a problem because

• A)the TSLS estimator may not be normally distributed, even in large samples.
• B)they result in the instruments not being exogenous.
• C)the TSLS estimator cannot be computed.
• D)you cannot predict the endogenous variables any longer in the first stage.

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Definitions:

Independent Variable

A variable in research that is manipulated or changed to observe its effect on a dependent variable.

Experimental Group

The group in an experiment that receives the variable being tested, allowing researchers to measure the effect of the variable on this group.

Theoretical Framework

A structure of concepts, theories, and propositions that provides a systematic view of phenomena by specifying relations among variables, with the aim of explaining and predicting phenomena.

Gender Stereotypes

Preconceived notions or beliefs about the roles, behaviors, and characteristics deemed appropriate for men and women by society, which can influence individuals’ opportunities and interactions.