Table 4-7 (found on the textbook's Web site) gives data on child mortality (CM), female literacy rate

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Table 4-7 (found on the textbook's Web site) gives data on child mortality (CM), female literacy rate (FLR), per capita GNP (PGNP), and total fertility rate (TFR) for a group of 64 countries.
a. A priori, what is the expected relationship between CM and each of the other variables?
b. Regress CM on FLR and obtain the usual regression results.
c. Regress CM on FLR and PGNP and obtain the usual results.
d. Regress CM on FLR, PGNP, and TFR and obtain the usual results. Also show the ANOVA table.
e. Given the various regression results, which model would you choose and why?
f. If the regression model in (d) is the correct model, but you estimate (a) or (b) or (c), what are the consequences?
g. Suppose you have regressed CM on FLR as in (b). How would you decide if it is worth adding the variables PGNP and TFR to the model? Which test would you use? Show the necessary calculations.
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Essentials of Econometrics

ISBN: 978-0073375847

4th edition

Authors: Damodar Gujarati, Dawn Porter

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