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Q. 1. Let kids denote the number of children ever born to a woman also let educe denote yrs of educations for the woman. A easy model relating fertility to yrs of education is: kids = 0 + 1educ + u; where u is the unobserved error.
(i) Illustrate what kind of factors are contained in u? Are these likely to be correlated with level education?
(ii) Will an easy regression analysis uncover the ceteris paribus effect of education of fertility? Explain.
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