Which of the following correlations would be an acceptable way to show that the variable (P;) is a suitable proxy for A, in the regression Y₁ = BO+B1 T₁+ B ₂ A₁+ U?

MATLAB: An Introduction with Applications
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Which of the following correlations would be an acceptable way to show that the variable (P;) is a suitable proxy for A;in
the regression Y₁ = Bo+B1 T₁+ B ₂ A₁+ U?
Corr(Y, T) # 0
spCorr(Y, T; (P;)) # 0
pCorr(Y, P Ti) # 0
None of the answers is correct.
Transcribed Image Text:Which of the following correlations would be an acceptable way to show that the variable (P;) is a suitable proxy for A;in the regression Y₁ = Bo+B1 T₁+ B ₂ A₁+ U? Corr(Y, T) # 0 spCorr(Y, T; (P;)) # 0 pCorr(Y, P Ti) # 0 None of the answers is correct.
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