The following equation explains weekly hours of television viewing by a child in terms of the child’s age, mother’s education, father’s education, and number of siblings: tvhours = b0 + b1age + b2age^2 + b3motheduc + b4fatheduc + b5sibs + u

Subject:EconomicsPrice:3.87 Bought7

Share With

The following equation explains weekly hours of television viewing by a child in terms of the child’s age, mother’s education, father’s education, and number of siblings:

tvhours = b0 + b1age + b2age^2 + b3motheduc + b4fatheduc + b5sibs + u.

We are worried that tvhours is measured with error in our survey. Let  tvhours denote the reported hours of television viewing per week.

(i) What do the classical errors-in-variables (CEV) assumptions require in this application?

(ii) Do you think the CEV assumptions are likely to hold? Explain.