X” denote the number of children ever born to a woman, and let “Y” denote years of education for the woman. A simple model relating fertility to years of education is X = β0 + β1Y + u where u is the unobserved error. (i) What kind of factors are contained in u? Are these likely to be correlated with level of education?

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X” denote the number of children ever born to a woman, and let “Y” denote years of
education for the woman. A simple model relating fertility to years of education is

X = β0 + β1Y + u

where u is the unobserved error.

(i) What kind of factors are contained in u? Are these likely to be correlated with level of education?

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