Answer True or False. For each false statement, explain why the statement is false. I need the answer correct and fast please. In an Instrumental Variable regression we can check the assumption on instrument rele- vance by considering a first stage regression. In particular, we should regress the instru- ment on the endogenous variable and test the significance of the slope coefficient. If the slope coefficient is significantly different from zero, we conclude that the instrument is relevant.

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Answer True or False. For each false statement,
explain why the statement is false. I need the answer
correct and fast please.
9. In an Instrumental Variable regression we can check the assumption on instrument rele-
vance by considering a first stage regression. In particular, we should regress the instru-
ment on the endogenous variable and test the significance of the slope coefficient. If the
slope coefficient is significantly different from zero, we conclude that the instrument is
relevant.
Transcribed Image Text:Answer True or False. For each false statement, explain why the statement is false. I need the answer correct and fast please. 9. In an Instrumental Variable regression we can check the assumption on instrument rele- vance by considering a first stage regression. In particular, we should regress the instru- ment on the endogenous variable and test the significance of the slope coefficient. If the slope coefficient is significantly different from zero, we conclude that the instrument is relevant.
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