2:03 pm Wed 10 Nov 90% vuws.westernsydney.edu.au Remaining Time: 3 hours, 16 minutes, 06 seconds. Question Completion Status: A group of researchers at WSU have estimated the following model. The model attempts to explain the number of children a woman will have, with the independent variables being the age they first had a child (ageforth) and the number of years of their education (educ). children, = Bo + Bageforth; + Bzeduc; + ui Below is the Stata output that their regression estimates have generated, in addition to their additional tests. Examine these results, and discuss them. a. Identify any problems with that you can detect in these results. (5 marks) b. Present solutions to these problems which may enable an improvement in the estimation of this model. (5 marks) regress children ageforth educ Source df MS Number of obs 3,273 - - - - F (2, 3270) 233.07 Model 5. 6169 2 877. 808466 Prob > F 0. 0000 Residual 12315.8429 3, 270 3. 76631281 R-squared 0. 1248 Adj R-squared 0. 1242 Total | 14071.4598 3,272 4. 30056841 Root MSE 1.9407 - - - - children | Coef. Std. Err. P> t 95% Conf. Interval] ageforth -. 0339918 . 0110723 -3.07 0. 002 - . 0557011 -. 0122826 educ - .174775 . 0084176 -20.76 0. 000 . 1912792 - . 1582707 _cons 4. 612817 . 2120193 21. 76 0.006 4. 197113 5. 028521 estat vif Variable VIF 1/VIF ageforth 1.02 0. 981881 educ 1.02 0. 981881 Mean VIF | 1.02 predict el, residuals (1, 088 missing values generated)2:04 pm Wed 10 Nov 90% vuws.westernsydney.edu.au Remaining Time: 3 hours, 15 minutes, 51 seconds. Question Completion Status: . hettest Breusch-Pagan / Cook-Weisberg test for heteroskedasticity Ho: Constant variance Variables: fitted values of children chi2(1) 223.57 Prob > chi2 0. 0000 estat ic Akaike's information criterion and Bayesian information criterion Model Obs 11(null) 11(model) df AIC BIC 3,273 -7030.926 -6812.842 3 13631. 68 13649.96 Note: N=Obs used in calculating BIC; see [R] BIC note. estat ovtest Ramsey RESET test using powers of the fitted values of children Ho: model has no omitted variables F(3, 3267) = 24. 69 Prob > F 0. 0000 For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIUS Paragraph Open Sans, s... 10pt V 1x x 1 Q Q 5 0 ... P O WORDS POWERED BY TINY > A Click Submit to complete this assessment. chi2 e1 3,273 0.0000 0.0000 0.0000 . estat imtest Cameron & Trivedi's decomposition of IM-test Source | chi2 df P Heteroskedasticity 183.28 0.0000 Skewness 188.97 PN 0.0000 Kurtosis 12.34 0. 0004 Total 384.60 0.0000 . hettest Breusch-Pagan / Cook-Weisberg test for heteroskedasticity Ho: Constant variance Variables: fitted values of children chi2 (1) 223.57 Prob > chi2 0.0000 estat ic Akaike's information criterion and Bayesian information criterion