Statistics - How do we produce a more accurate OLS estimate of B1
Question # 00255280
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Updated on: 04/18/2016 08:53 AM Due on: 05/18/2016
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1.In the following simple regression model:
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Y = B0 + B1X + e
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How do we produce a more accurate OLS estimate of B1?
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2. Let kids denote the number of children ever born to a woman, and let educ denote years of education for the woman. A simple model relating fertility to years of education is:
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kids = B0 + B1educ + e
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a. How do we interpret B0?
b. Will this simple regression analysis uncover the true effect of education on fertility? Explain.
c. Suppose every woman in the sample had the same number of children. What problem would this create? Explain.
d. Support every woman in the sample had the same level of education. What problem would this create? Explain.
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Solution: Statistics - How do we produce a more accurate OLS estimate of B1