# 8. Suppose you intend to estimate the impact of number of kids in a household onmother's labor supply (work hours). You estimateHours a+ pN_boys+ P,N_girls+ Edu+ Age+u,using a sample of married womenN_boys is the number of boys and N_girls is the number of girls in the household.Which of the following is correct?a) This model suffers from perfect collinearityb) The OLS estimator cannot be computed in this situation2c) When adding the total number of kids as an additional regressor, we would expectthat R2 to go upd) When adding the total number of kids as an additional regressor, we would expectthat OLS does not work.

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When you add another independent variable in the equation R2 will always increase. So here we are adding another variable i.e. No of kids in the...

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