You have data on 945 teenage girls, all below the age of 20. The data contain an indicator for whether teenage girls know about contraceptive methods (contraceptive). You are interested in estimating the causal effect of completing compulsory school on the likelihood that young girls know about contraceptive methods. You observe an indicator for completing compulsory school (compulsory), as well as age, and an dummy variable indicating residence in an urban area. Consider the following regression: contraceptive Bo + B1age + Bzage² + Bzurban + B4compulsory+u %3D You are concerned that the indicator for compulsory school is correlated with the error term. The data set contains an indicator for being born in the first quarter of the year (quarter1). Birth month determines age of first entry into school in the USA. Individuals born in the first quarter of the year start school after turning 6. Since it is legal to drop out of school at age 16, this implies that these individuals can drop out of school before completing 10 years of school. Which of the following needs to be true for quarter1 to be a valid instrument: O quarter1 needs O quarter1 needs to be uncorrelated with years of education O quarterl needs to be uncorrelated with family background characteristics and individuals' unobserved ability correlated with age O the average of quarter1 in the sample should be no lower than 25%
You have data on 945 teenage girls, all below the age of 20. The data contain an indicator for whether teenage girls know about contraceptive methods (contraceptive). You are interested in estimating the causal effect of completing compulsory school on the likelihood that young girls know about contraceptive methods. You observe an indicator for completing compulsory school (compulsory), as well as age, and an dummy variable indicating residence in an urban area. Consider the following regression: contraceptive Bo + B1age + Bzage² + Bzurban + B4compulsory+u %3D You are concerned that the indicator for compulsory school is correlated with the error term. The data set contains an indicator for being born in the first quarter of the year (quarter1). Birth month determines age of first entry into school in the USA. Individuals born in the first quarter of the year start school after turning 6. Since it is legal to drop out of school at age 16, this implies that these individuals can drop out of school before completing 10 years of school. Which of the following needs to be true for quarter1 to be a valid instrument: O quarter1 needs O quarter1 needs to be uncorrelated with years of education O quarterl needs to be uncorrelated with family background characteristics and individuals' unobserved ability correlated with age O the average of quarter1 in the sample should be no lower than 25%
Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter1: Functions
Section1.2: The Least Square Line
Problem 8E
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Transcribed Image Text:You have data on 945 teenage girls, all below the age of 20. The data contain an indicator for
whether teenage girls know about contraceptive methods (contraceptive). You are interested
in estimating the causal effect of completing compulsory school on the likelihood that young
girls know about contraceptive methods. You observe an indicator for completing compulsory
school (compulsory), as well as age, and an dummy variable indicating residence in an urban
area. Consider the following regression:
contraceptive
= Bo + B1age + B2age² + Bzurban + Bạcompul sory + u
You are concerned that the indicator for compulsory school is correlated with the error term.
The data set contains an indicator for being born in the first quarter of the year (quarter1).
Birth month determines age of first entry into school in the USA. Individuals born in the first
quarter of the year start school after turning 6. Since it is legal to drop out of school at age 16,
this implies that these individuals can drop out of school before completing 10 years of school.
Which of the following needs to be true for quarter1 to be a valid instrument:
quarter1 needs to be correlated with age
O quarterl needs to be uncorrelated with years of education
O quarterl needs to be uncorrelated with family background characteristics and individuals' unobserved
ability
O the average of quarter1 in the sample should be no lower than 25%
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