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QUESTION 6 5 points Save Answer Imagine you would like to estimate the following model health = t) + 1drinks_day + u where health is
QUESTION 6 5 points Save Answer Imagine you would like to estimate the following model health = t) + 1drinks_day + u where health is self-rated health on a 1 to 5 scale (5 = very healthy) and drinks_day is the number ofalcoholic drinks a person consumes per day (on average). Imagine you would like to estimate l using an instrumental variable (IV) regression. As instrument, you would use the variable education, which is equal to a person's years of completed education. For the situation described above, state the IV relevance assumption. In your answer, use the actual variable names (instead of e.g. x,_y and z)
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