20. When an exogenous instrument is used, IV estimators are(a) consistent and approximately normally distributed in large samples(b) unbiased and BLUE in all sample sizes(c) consistent ifzis normally distributed(d) normally distributed in all sample sizes and consistent in large sample sizes21. Which of the following statements is true regardingvar(ˆβ2) when estimated by IV usingzas aninstrument forx?5
22. What is the null hypothesis when performing anF-test to test the strength of multiple instrumentsj= 1, ..., J?23. When you are implementing an instrumental variable regression, you are worried about6
PartII—PracticalandComputationalQuestions(eachquestionworth2points):Consider the following regression model:yi=β1+β2x2i+· · ·+βKxKi+ei,24. You have estimated the following simple regression modely= 379 + 1.44x3(1)What is the elasticity when x = 8.49?(a) 263.19(b) 311.39(c) 2.10(d) -24.725. You have estimated a two variable model, i.e.,K= 2, and your printout includes the followinginformationsxy=3614.00sx=12.72sy=394.61SST=758,912Then theR2for this regression model is:26. Suppose thatK= 3,y= 9,x2= 3,b2= 1.2,x3= 2,b3= 1.3, then the estimate forβ1,b1is
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