You have data on 945 teenage girls, all below the age of 20. The data contain an indicator for whether teenage girls know about contraceptive methods (contraceptive). You are interested in estimating the causal effect of completing compulsory school on the likelihood that young girls know about contraceptive methods. You observe an indicator for completing compulsory school (compulsory), as well as age, and an dummy variable indicating residence in an urban area. Consider the following regression: contraceptive = Bo + B1age + B2age² + Bzurban + B4compulsory +u You are concerned that the indicator for compulsory school is correlated with the error term. The data set contains an indicator for being born in the first quarter of the year (quarter1). Birth month determines age of first entry into school in the USA. Individuals born in the first quarter of the year start school after turning 6. Since it is legal to drop out of school at age 16, this implies that these individuals can drop out of school before completing 10 years of school. Which of the following needs to be true for quarter1 to be a valid instrument: O quarter1 needs to be correlated with age O quarterl needs to be uncorrelated with years of education O quarterl needs to be uncorrelated with family background characteristics and individuals' unobserved ability O the average of quarter1 in the sample should be no lower than 25%
You have data on 945 teenage girls, all below the age of 20. The data contain an indicator for whether teenage girls know about contraceptive methods (contraceptive). You are interested in estimating the causal effect of completing compulsory school on the likelihood that young girls know about contraceptive methods. You observe an indicator for completing compulsory school (compulsory), as well as age, and an dummy variable indicating residence in an urban area. Consider the following regression: contraceptive = Bo + B1age + B2age² + Bzurban + B4compulsory +u You are concerned that the indicator for compulsory school is correlated with the error term. The data set contains an indicator for being born in the first quarter of the year (quarter1). Birth month determines age of first entry into school in the USA. Individuals born in the first quarter of the year start school after turning 6. Since it is legal to drop out of school at age 16, this implies that these individuals can drop out of school before completing 10 years of school. Which of the following needs to be true for quarter1 to be a valid instrument: O quarter1 needs to be correlated with age O quarterl needs to be uncorrelated with years of education O quarterl needs to be uncorrelated with family background characteristics and individuals' unobserved ability O the average of quarter1 in the sample should be no lower than 25%
College Algebra
7th Edition
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter1: Equations And Graphs
Section: Chapter Questions
Problem 10T: Olympic Pole Vault The graph in Figure 7 indicates that in recent years the winning Olympic men’s...
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Transcribed Image Text:QUESTION 3
You have data on 945 teenage girls, all below the age of 20. The data contain an indicator for
whether teenage girls know about contraceptive methods (contraceptive). You are interested
in estimating the causal effect of completing compulsory school on the likelihood that young
girls know about contraceptive methods. You observe an indicator for completing compulsory
school (compulsory), as well as age, and an dummy variable indicating residence in an urban
area. Consider the following regression:
contraceptive = B0 + B1age + B2age² + Bzurban + B4compulsory + u
You are concerned that the indicator for compulsory school is correlated with the error term.
The data set contains an indicator for being born in the first quarter of the year (quarter1).
Birth month determines age of first entry into school in the USA. Individuals born in the first
quarter of the year start school after turning 6. Since it is legal to drop out of school at age 16,
this implies that these individuals can drop out of school before completing 10 years of school.
Which of the following needs to be true for quarter1 to be a valid instrument:
O quarterl needs to be correlated with age
O quarter1 needs to be uncorrelated with years of education
O quarterl needs to be uncorrelated with family background characteristics and individuals' unobserved
ability
O the average of quarter1 in the sample should be no lower than 25%
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