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Conditions for instruments to be valid include all of the following except: (A) each one of...

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Basic Math

Conditions for instruments to be valid include all of thefollowing except: (A) each one of the instrumental variables mustbe normally distributed. (B) at least one of the instruments mustenter the population regression of ?? on the ??s and the ??s. (C)perfect multicollinearity between the predicted endogenousvariables and the exogenous variables must be ruled out. (D) eachinstrument must be uncorrelated with the error term

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Instrumental variable regression works on the assumption that At least one of the instruments must enter the regression equation This is assumed since if no instrumental variable    See Answer
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