1. The following model is a simplified version of the multiple regression model used by Biddle and Hamermesh (1990) to study the tradeoff between time spent sleeping and working and to look at other factors affecting sleep: sleep = Bo + Bitotwrk + Bzeduc + Bzage +u where sleep and totwrk (total work) are measured in minutes per week and educ and age are measured in years. (a) If adults trade off sleep for work, what is the sign of 1? (b) What signs do you think 2 and 3 will have? (c) Would you say totwrk, educ, and age explain much of the variation in sleep? What other factors might affect the time spent sleeping? Are these likely to be correlated with totwrk?

1. The following model is a simplified version of the multiple regression model used by Biddle and Hamermesh (1990) to study the tradeoff between time spent sleeping and working and to look at other factors affecting sleep: sleep = Bo + Bitotwrk + Bzeduc + Bzage +u where sleep and totwrk (total work) are measured in minutes per week and educ and age are measured in years. (a) If adults trade off sleep for work, what is the sign of 1? (b) What signs do you think 2 and 3 will have? (c) Would you say totwrk, educ, and age explain much of the variation in sleep? What other factors might affect the time spent sleeping? Are these likely to be correlated with totwrk?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter4: Estimating Demand

Section: Chapter Questions

Problem 3E

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