Question: Consider the following simple regression model: y = 0 + 1 x + u . Suppose z is an instrument for x . Which of

Consider the following simple regression model: y=0+1x+u.
Suppose z is an instrument for x.
Which of the following conditions denotes instrument relevance?
Group of answer choices
The instrumental variables estimator is always biased if Cov(x,u)0.
The condition Cov(z,u)=0 can be tested statistically.
The condition Cov(z,x)0 cannot be tested statistically.
The ordinary least squares estimator is unbiased if Cov(x,u)0.

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