  Textbook Solutions Expert Q&A Study Pack Practice 

Find solutions for your homework Search

home / study / business / business statistics / business statistics solutions manuals / introductory econometrics / 4th edition / chapter 3 / problem 2p

Introductory Econometrics (4th Edition) Post a question

Answers from our experts for your tough
homework questions
See this solution in the app
Enter question
Chapter 3, Problem 2P 10 Bookmarks Show all steps: ON

Problem
Continue to post
20 questions remaining
The data in WAGE2.RAW on working men was used to estimate the following equation:

= 10.36 - .094 sibs + .131 meduc + .210 feduc n = 722, R2 = .214,

where educ is years of schooling, sibs is number of siblings, meduc is mother's years of Snap a photo from your
schooling, and feduc is father's years of schooling. phone to post a question
We'll send you a one-time
(i) Does sibs have the expected effect? Explain. Holding meduc and feduc fixed, by how much download link
does sibs have to increase to reduce predicted years of education by one year? (A noninteger
answer is acceptable here.)
888-888-8888 Text me
(ii) Discuss the interpretation of the coefficient on meduc.

(iii) Suppose that Man A has no siblings, and his mother and father each have 12 years of By providing your phone number, you agree to receive
a one-time automated text message with a link to get
education. Man B has no siblings, and his mother and father each have 16 years of education. the app. Standard messaging rates may apply.

What is the predicted difference in years of education between B and A?

My Textbook Solutions
Step-by-step solution

Step 1 of 3

Introductory Introduction Nutrition

(i) Econometrics to Chemical... Through...
4th Edition 7th Edition 5th Edition
Yes. The variable sibs has the expected effect. This is because of budget constraints, it makes
View all solutions
sense that, the more siblings there are in a family, the less education any one child in the family
will get. In order to find the increase in the number of siblings that reduces predicted education
by one year, solve the following equation:

Thus, almost 10.6 sibs will have to increase to reduce the predicted years of education by
one year.

Comment

Step 2 of 3

(ii)

The interpretation of the regression coefficient of meduc requires holding sibs and feduc fixed. It
explains that one more year of mother’s education leads to 0.131 years more of predicted
education. This means that if a mother has four more years of education, her son is predicted to
have about a half a year (.524) more years of education.

Comment

Step 3 of 3

(iii)

Since the number of siblings is the same, but meduc and feduc are both different, the coefficients
on meduc and feduc both need to be accounted for. The predicted difference in education
between B and A will be equal to: .

Thus, the predicted difference in years of education between B and A will be 1.364 years
(approx.).

Comment

Was this solution helpful? 38 1

Recommended solutions for you in Chapter 3

Chapter 3, Problem 5CE Chapter 3, Problem 13P

Confirm the partialling out interpretation of the OLS (i) Consider the simple
estimates by explicitly doing the partialling out for regression model y = β0
Example. This first... + β1x + u under the first
four Gauss Markov
See solution
assumptions. For some
function g(x)...

See solution

See more problems in subjects you study

COMPANY LEGAL & POLICIES CHEGG PRODUCTS AND SERVICES CHEGG NETWORK CUSTOMER SERVICE
About Chegg Advertising Choices Cheap Textbooks Mobile Apps EasyBib Customer Service
Chegg For Good Cookie Notice Chegg Coupon Sell Textbooks Internships.com Give Us Feedback
College Marketing General Policies Chegg Play Solutions Manual Thinkful Help with eTextbooks
Corporate Development Intellectual Property Rights Chegg Study Help Study 101 Help to use EasyBib Plus
Investor Relations Terms of Use College Textbooks Textbook Rental Manage Chegg Study
Jobs Global Privacy Policy eTextbooks Used Textbooks Subscription
Join Our Affiliate Program DO NOT SELL MY INFO Flashcards Digital Access Codes Return Your Books
Media Center Honor Code Learn Chegg Money Textbook Return Policy
Site Map Honor Shield Chegg Math Solver

© 2003-2021 Chegg Inc. All rights reserved.