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10. When an exogenous instrument is used, IV estimators area.) consistent and approximately normally distributed in large samplesb.) unbiased and BLUE in all sample sizesc.) consistent if z is normally distributedd.) normally distributed in all sample sizes and consistent in large sample sizesAns: aLevel: Moderate
Section: 10.311. Which of the following statements is true regarding var when estimated by IV using z as an instrument for x?12. In 2SLS, how should the strength of an instrument be measured?13. What is the null hypothesis when performing an F-test to test the strength of an instrument?
14. What should you conclude if you get an F-statistic of 8.3 when testing the strength ofan instrument?