Question: 12.6 In an instrumental variable regression model with one regressor, Xi, and one instrument, Zi, the regression of Xi onto Zi has R2 = 0.1

12.6 In an instrumental variable regression model with one regressor, Xi, and one instrument, Zi, the regression of Xi onto Zi has R2 = 0.1 and n = 50.

Is Zi a strong instrument? [Hint: See Equation (7.14).] Would your answer change if R2 = 0.1 and n = 150?

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