Introductory Econometrics 4th Edition by Jeffrey Wooldridge

تمرين 9

Let kids denote the number of children ever born to a woman, and let educ denote years of education for the woman. A simple model relating fertility to years of education is
kids = ß0 + ß1 educ + u,
where u is the unobserved error.
(i) What kinds of factors are contained in u Are these likely to be correlated with level of education
(ii) Will a simple regression analysis uncover the ceteris paribus effect of education on fertility Explain.