Question
Hi, I need help with question The dataset contains the variable samesexi, which is equal to 1 if the woman's first two children are of
Hi, I need help with question
The dataset contains the variable samesexi, which is equal to 1 if the woman's first two children are of the same gender and equal to 0 otherwise. Estimate the following regression using OLS with heteroskedasticity robust standard errors: morekidsi = 0 + 1samesexi + 2agemi + i (2) Notice that the variable morekidsi is a dummy variable so this is a linear probability model. i. Explain how we should interpret the parameter 1 in this model. ii. Consider two women who have the same age but one woman's first two children are of the same gender while the other woman's first two children are of opposite gender. Based on your results, what is the predicted difference in their probability of having more than two children? Show your work. iii. Consider again two women who have the same age but one woman's first two children are of the same gender while the other woman's first two children are of opposite gender. Test the H0 that these two women have the same probability of having more than two children. Write the statement of the test in terms of the relevant parameter of (2). Then run the test using a 5% significance level. Can you reject the H0? Show your work.
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