Which of the following correlations would be an acceptable way to show that the variable (Pi) is a suitable proxy for Ai in the regression Yi = β0 + β1Ti + β2Ai + Ui?
A) Corr(Yi, Ti) ≠ 0
B) spCorr(Yi, Ti (Pi) ) ≠ 0
C) pCorr(Yi, Pi; Ti) ≠ 0
D) None of the answers is correct.
Correct Answer:
Verified
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