We want to study the effect of number of children on women\'s labor supply, and
ID: 2442343 • Letter: W
Question
We want to study the effect of number of children on women's labor supply, and include one child, two children, and more than two children, the three variables in the regression model, which of the following assumption will be violated?
MLR.1. Linear in parameters
MLR.2. Random sampling
MLR.3. No perfect collinearity
MLR.4. Zero conditional mean
MLR.5. Homoskedasticity
MLR.6. Normality of error terms
A.MLR.1. Linear in parameters
B.MLR.2. Random sampling
C.MLR.3. No perfect collinearity
D.MLR.4. Zero conditional mean
E.MLR.5. Homoskedasticity
F.MLR.6. Normality of error terms
Explanation / Answer
Option E
assumption of homoscedasticity means that the variance around the regression line is the same for all values of the predictor variable (X).
But since it's obvious that having more than two children will necessarily reduce the labor supply of woman
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