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Consider the model, Y; = Bo + B1 Xi+Uj, where you suspect Xi is endogenous. You have an exogenous instrument and you estimate

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Answer - Given that What for given model Yi - Bo+ B,Xiitu; here Xi is endogeneous also to test for endogenous use the model Y10.07-0 0-10 0.10 4.7 Pvalue P (it> 4:7) :0.00000 84147 clearly evalue 10.05 we reject & Ho that means there is endogenity. h

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