Question: In an instrumental variable regression model with one regressor, X,, and one instrument, Z,, the regression of X, onto Z, has R2 = 0.05 and

In an instrumental variable regression model with one regressor, X,, and one instrument, Z,, the regression of X, onto Z, has R2 = 0.05 and n = 100. Is Z, a strong instrument? [Hint: See Equation (7.14).] Would your answer change if R2 = 0.05 and n = 500?

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