3. The following model is a simplified version of the multiple regression model used by BESTEconometrics Group to study the trade off between time spent sleeping and working to look at otherfactors affecting sleep:sleep %3D Bo + Bitotwrk + Bzeduис + Взаде + m,where sleep and totwork (total work) are measure in minutes per week and educ and age are measuredin years.(i) If adults trade sleep for work, what is the sign of B1?(ii) What signs do you think B2 and ß3 will have?(iii) Using the data in SLEEP75.RAW, the estimated equation issleep= 3,638. 25-. 148totwrk – 11.13educ – 2. 20age + µiIf someone works five hours per week, by how manu minutes is sleep predicted to fall? Is thisa large tradeoff?(iv) Discuss the sign and magnitude of the estimated coefficient on educ.(v) Would you say totwrk, educ, and age explain much of the variation in sleep? What other factorsmight affect the time spent sleeping? Are these likely to be correlated with totwrk?

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3. The following model is a simplified version of the multiple regression model used by BEST Econometrics Group to study the trade off between time spent sleeping and working to look at other factors affecting sleep: sleep = Bo + Bitotwrk + Bzeduc + ßzage + µ¿ where sleep and totwork (total work) are measure in minutes per week and educ and age are measured in years. (i) If adults trade sleep for work, what is the sign of B1? (ii) What signs do you think B2 and ß3 willI have? (iii) Using the data in SLEEP75.RAW, the estimated equation is sleep = 3,638. 25–. 148totwrk – 11.13educ – 2.20age + µ; If someone works five hours per week, by how manu minutes is sleep predicted to fall? Is this a large tradeoff? (iv) Discuss the sign and magnitude of the estimated coefficient on educ. (v) 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?

3. The following model is a simplified version of the multiple regression model used by BEST Econometrics Group to study the trade off between time spent sleeping and working to look at other factors affecting sleep: sleep = Bo + Bitotwrk + Bzeduc + ßzage + µ¿ where sleep and totwork (total work) are measure in minutes per week and educ and age are measured in years. (i) If adults trade sleep for work, what is the sign of B1? (ii) What signs do you think B2 and ß3 willI have? (iii) Using the data in SLEEP75.RAW, the estimated equation is sleep = 3,638. 25–. 148totwrk – 11.13educ – 2.20age + µ; If someone works five hours per week, by how manu minutes is sleep predicted to fall? Is this a large tradeoff? (iv) Discuss the sign and magnitude of the estimated coefficient on educ. (v) 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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