What is an instrumental variable?
An instrumental variable (IV) is a tool used in regression analysis to solve the problem of endogeneity — when an explanatory variable is correlated with the error term. A good instrument must satisfy two...
Tagged: Regression
Effect size in regression analysis
In regression analysis, effect size refers to the strength or practical importance of the relationship between the predictor(s) and the outcome variable. Unlike t-tests, regression effect sizes focus on how much variance is explained...
