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 = Bo + Biage + B;age² + Bzmotheduc + Bfatheduc + Bssibs + 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.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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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 = Bo + Biage + B;age² + Bzmotheduc + Bfatheduc + Bssibs + 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.
Transcribed Image Text: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 = Bo + Biage + B;age² + Bzmotheduc + Bfatheduc + Bssibs + 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.
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