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Do you think the regression in Table 5 suffers from omitted variable bias? If yes, which additional variables would you include to control for omitted variable bias?

Do you think the regression in Table 5 suffers from omitted variable bias? If yes, which additional variables would you include to control for omitted variable bias?

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.6: Summarizing Categorical Data
Problem 23PPS
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Do you think the regression in Table 5 suffers from omitted variable bias? If yes,
which additional variables would you include to control for omitted variable bias?

Table 5 . regress size hhinc owner hhsizel hhsizez hhsize3, robust noconstant Linear regression Nunber of obs 1,593 F(5, 1588) 3895.70 Prob > F 0.0000 R-squared 0.9255 Root MSE 353.16 Robust size Coefficient std. err. t P>|t| (95% conf. interval) hhinc 6.80 0.000 .004567 0006717 0032495 .0058845 owner 404.7925 442.6217 hhsizel 675.8086 24.24222 27.88 0.00 628.2585 723.3587 hhsize2 788.6606 36.47628 21.62 717.1138 860.2073 hhsize) 993.6609 58.63294 16.95 e.000 878.6548 1108.667
Transcribed Image Text:Table 5 . regress size hhinc owner hhsizel hhsizez hhsize3, robust noconstant Linear regression Nunber of obs 1,593 F(5, 1588) 3895.70 Prob > F 0.0000 R-squared 0.9255 Root MSE 353.16 Robust size Coefficient std. err. t P>|t| (95% conf. interval) hhinc 6.80 0.000 .004567 0006717 0032495 .0058845 owner 404.7925 442.6217 hhsizel 675.8086 24.24222 27.88 0.00 628.2585 723.3587 hhsize2 788.6606 36.47628 21.62 717.1138 860.2073 hhsize) 993.6609 58.63294 16.95 e.000 878.6548 1108.667
The questions below are based on a dataset containing the characteristics of 5,407 households. In particular, we will use the following variables: - size: home size, measured in square feet. - hhinc: annual household net income, measured in euros. - owner. dummy variable equal to 1 if the living space is owned, and 0 if the living space is rented. - hhsize1: dummy variable equal to 1 if the number of household's members is 1 or 2, and 0 otherwise. hhsize2: dummy variable equal to 1 if the number of household's members is 3 or 4, and 0 otherwise. hhsize3: dummy variable equal to 1 if the number of household's members is 5 or above 5, and 0 otherwise. - edu: education level of household's members. The Appendix contains tables with the critical values of the standard normal distribution and the F distribution.
Transcribed Image Text:The questions below are based on a dataset containing the characteristics of 5,407 households. In particular, we will use the following variables: - size: home size, measured in square feet. - hhinc: annual household net income, measured in euros. - owner. dummy variable equal to 1 if the living space is owned, and 0 if the living space is rented. - hhsize1: dummy variable equal to 1 if the number of household's members is 1 or 2, and 0 otherwise. hhsize2: dummy variable equal to 1 if the number of household's members is 3 or 4, and 0 otherwise. hhsize3: dummy variable equal to 1 if the number of household's members is 5 or above 5, and 0 otherwise. - edu: education level of household's members. The Appendix contains tables with the critical values of the standard normal distribution and the F distribution.
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