Hwk 2 - Fall 2010

Hwk 2 - Fall 2010 - Econ 230 Homework 2 1 Let kids denote...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Econ 230 - Homework 2 1. Let kids denote the number of children ever born to a woman, and let educ denote years of educations for the woman. A simple model relating fertility to years of education is: kids = β 0 + β 1 educ + u, where u is the unobserved error. (i) What kind of factors are contained in u ? Are these likely to be correlated with level edu- cation? (ii) Will a simple regression analysis uncover the ceteris paribus effect of education of fertility? Explain. 2. The data set BWGHT.RAW contains data on births of women in the United States. Two variables of interest are the dependent variable, infant birth weight in ounces ( bwght ), and an explanatory variable, average number of cigarettes the mother smoked per day during pregnancy ( cigs ). The following simple regression was estimated using data on n = 1388 births: ˆ bwght = 119 . 77 - 0 . 514 cigs (i) What is the predicted birth weight when cigs = 0? What about when cigs = 20 (one pack per day)? Comment on the difference. (ii) Does this simple regression necessarily capture a causal relationship between the child’s birth
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/30/2011 for the course ECON 230 taught by Professor Pm during the Spring '10 term at Conn College.

Page1 / 2

Hwk 2 - Fall 2010 - Econ 230 Homework 2 1 Let kids denote...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online