Which one of the following are factors that influence the variance of 2SLS Bj estimates?
A) Model fit
B) Sample size
C) Explanatory power of the instrument in explaining X
D) Overall fit of the first stage regression
E) All of the above

Question

Quizplus · Accepted Answer

All of the factors listed (model fit, sample size, explanatory power of the instrument in explaining X, and overall fit of the first stage regression) can influence the variance of 2SLS Bj estimates. It is important to consider and address these factors when using 2SLS to ensure accurate and reliable results.

Which One of the Following Are Factors That Influence the Variance