An independent variable is endogenous if changes in it are related to factors in the error term.

Name: An independent variable is endogenous if changes in it are related to factors in the error term.
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When an independent variable is endogenous, it means that its changes are influenced by factors that are not included in the model and are captured in the error term. This can lead to biased coefficient estimates and invalid statistical inferences.

An Independent Variable Is Endogenous If Changes in It Are