The statement that instrumental variables cannot be used for estimating a regression equation if the regression model suffers from the measurement error problem is false.
Instrumental variables (IVs) are variables which are used to control for confounding and measurement error in observational studies. They allow for the possibility of making causal inferences with observational data. Hence, the method of instrumental variables is used to approximate causal relationships when controlled experiments are not feasible or when a treatment is not successfully delivered to every unit in a randomized experiment. Hence, instrumental variables can be used for estimating a regression equation if the regression model suffers from the measurement error problem and the statement is false.
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