Consider the following model relating fertility (Y), as measured by the number of children born, to education (X), (I) What kind of factors are contained in the error term? Are these factors likely to be correlated with the level of education? (II) Will a simple linear regression analysis produce an unbiased estimate of the effect of education on fertility? Explain.

/in /by

Consider the following model relating fertility (Y), as
measured by the number of children born, to education (X),

(I) What kind of factors are contained in the error term? Are these
factors likely to be correlated with the level of education?

(II) Will a simple linear regression analysis produce an unbiased
estimate of the effect of education on fertility? Explain.

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