Question: ( S & W 1 2 . 5 ) Consider the I V regression model Y i = 0 + 1 x i + 2

(S&W12.5) Consider the IV regression model
Yi=0+1xi+2Wi+ui
where xiis correlated with ui and Ziisan instrument. Suppose that the first three
assumptions in Key Concept 12.4(TheIV Regression Assumptions) are satisfied.
Which IV assumption is not satisfied when:
aZiis independent of(Yi,xi,Wi)?
bZi=Wi?
cWi=1 for all i?
dZi=xi?
( S & W 1 2 . 5 ) Consider the I V regression

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