Instrumental Inequality: Binary Variables

This lecture covers the concept of instrumental inequality in the context of binary variables, discussing the necessary conditions for discrete random variables to be generated by an instrumental process. It explores the relationship between variables X, Y, and Z, and the criteria for an instrument relative to an ordered pair of variables. The instructor explains the generation process of X and Y through arbitrary deterministic functions and observed random variables. The lecture delves into the proof of the instrumental inequality and its implications, emphasizing the sufficiency of the conditions in the case of binary variables.