a. Suppose you restrict your sample to individuals with MomEdui = 10 What happens to the OLS estimates? b. Suppose you have two random samples of size 100, both with the same In the first sample, half of the mothers have 12 yearsof education and half have 14 years of education. In the second sample, one quarter of of the mothers have each of 10, 12, 14. and 16 years of education. Does the variance of the OLS estimator differ between the two samples? Explain why or why not. C. Suppose you estimate the above regression using a random sample of 100 observations. Then you find another random sample of 100 with the same as the first sample so you combine the two samples and re-estimate the regression parameters. What changes and why?
(Don't accept answers from Chat-GPT)You are estimating the following simple linear regression model:
Edui = B0 + B1 MomEdu + ui. Where Edu is the years of schooling of an individual and MomEdu is the years of education of the individual's mother (Note: We might estimate this sort of regression to learn about intergenerational transmission of economic success.)
a. Suppose you restrict your sample to individuals with MomEdui = 10 What happens to the OLS estimates?
b. Suppose you have two random
C. Suppose you estimate the above regression using a random sample of 100 observations. Then you find another random sample of 100 with the same as the first sample so you combine the two samples and re-estimate the regression parameters. What changes and why?
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