Consider the analysis in Computer Exercise C11 in Chapter 4 using the data in HTV, where educ
Question:
Consider the analysis in Computer Exercise C11 in Chapter 4 using the data in HTV, where educ is the dependent variable in a regression.
(i) How many different values are taken on by educ in the sample? Does educ have a continuous distribution?
(ii) Plot a histogram of educ with a normal distribution overlay. Does the distribution of educ appear anything close to normal?
(iii) Which of the CLM assumptions seems clearly violated in the model
educ = β0 + β1motheduc + β2fatheduc + β3abil + β4abil2 + u?
How does this violation change the statistical inference procedures carried out in Computer Exercise C11 in Chapter 4?
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Related Book For
Introductory Econometrics A Modern Approach
ISBN: 9781337558860
7th Edition
Authors: Jeffrey Wooldridge
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