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Simple Regression Model Q1 (From the textbook 'Introductory Econometrics - A Modern Approach')
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This question is taken from the book 'Introductory Econometrics - A Modern Approach' by Jeffrey M. Wooldridge
Econometrics Question Solved in this video:
Question: Let kids denote the number of children ever born to a woman, and let educate denote years of education for the woman. A simple model relating fertility to years of education is
kids = B0 + B1 educ + u,
where u is the unobserved error.
i) What kinds of factors are contained in u? Are these likely to be correlated with level of education?
ii) Will a simple regression analysis uncover the ceteris paribus effect of education on fertility? Explain.
#wooldridgetextbook #introductoryeconometrics #econometricssolutions
Whatsapp: +91-9560560080
Some of the Econometrics courses we have helped students with:
EC226: Econometrics 1 (University of Warwick)
EC203: Applied Econometrics (University of Warwick)
EC2020: Elements of Econometrics (London School of Economics - LSE)
MG205: Econometrics - Theory and Applications (London School of Economics - LSE)
EC3301: Econometrics (St Andrews)
ECON W3412: Introduction to Econometrics (Columbia University)
EC2017: Introductory Econometrics (City, University of London)
BEE2031: Econometrics (University of Exeter)
Econometrics: University of Jordan
Econometrics: University of Birmingham
Econometric Analysis: Newcastle University
This question is taken from the book 'Introductory Econometrics - A Modern Approach' by Jeffrey M. Wooldridge
Econometrics Question Solved in this video:
Question: Let kids denote the number of children ever born to a woman, and let educate denote years of education for the woman. A simple model relating fertility to years of education is
kids = B0 + B1 educ + u,
where u is the unobserved error.
i) What kinds of factors are contained in u? Are these likely to be correlated with level of education?
ii) Will a simple regression analysis uncover the ceteris paribus effect of education on fertility? Explain.
#wooldridgetextbook #introductoryeconometrics #econometricssolutions
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