The following equation explains weekly hours of television viewing by a child in terms of the child's age, mother's education, father's education, and number of siblings: tvhours = Bo + Biage + B;age² + Bzmotheduc + Bfatheduc + Bssibs + u. We are worried that tvhours" is measured with error in our survey. Let tvhours denote the reported hours of television viewing per week. |(i) What do the classical errors-in-variables (CEV) assumptions require in this application? |(ii) Do you think the CEV assumptions are likely to hold? Explain.

The following equation explains weekly hours of television viewing by a child in terms of the child's age, mother's education, father's education, and number of siblings: tvhours = Bo + Biage + B;age² + Bzmotheduc + Bfatheduc + Bssibs + u. We are worried that tvhours" is measured with error in our survey. Let tvhours denote the reported hours of television viewing per week. |(i) What do the classical errors-in-variables (CEV) assumptions require in this application? |(ii) Do you think the CEV assumptions are likely to hold? Explain.

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

Chapter4A: Problems In Applying The Linear Regression Model

Section: Chapter Questions

Problem 5E

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