used by Biddle and Hamermesh (1990) to study the trade-off between time sp sleeping and working and to look at other factors affecting sleep: sleep = Bo + B₁totwrk + ß₂educ + ß3age +u, where sleep and totwrk (total work) are measured in minutes per week and ed and age are measured in years. (i) If adults trade off sleep for work, what is the sign of ß₁? (ii) What signs do you think ß₂ and ß3 will have? (iii) Using the data in SLEEP75, the estimated equation is sleep = 6,241.15 + 0.211totwrk + 9.22educ + 1.67age n = 211, R² = 0.981 If someone works five more hours per week, by how many minutes is sleep predicted to fall? Is this a large tradeoff? (iv) Discuss the sign and magnitude of the estimated coefficient on educ. (v) Would you say totwrk, educ, and age explain much of the variation in slee What other factors might affect the time spent sleeping? Are these likely to be 10

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter4: Estimating Demand
Section: Chapter Questions
Problem 3E
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46) The following model is a simplified version of the multiple regression model
used by Biddle and Hamermesh (1990) to study the trade-off between time spent
sleeping and working and to look at other factors affecting sleep:
sleep = Bo + B₁totwrk + ß₂educ + ß3age +u,
where sleep and totwrk (total work) are measured in minutes per week and educ
and age are measured in years.
(i) If adults trade off sleep for work, what is the sign of f₁?
(ii) What signs do you think ₂ and 3 will have?
(iii) Using the data in SLEEP75, the estimated equation is
sleep = 6,241.15 + 0.211totwrk + 9.22educ + 1.67age
n = 211, R² = 0.981
If someone works five more hours per week, by how many minutes is sleep
predicted to fall? Is this a large tradeoff?
(iv) Discuss the sign and magnitude of the estimated coefficient on educ.
(v) Would you say totwrk, educ, and age explain much of the variation in sleep?
What other factors might affect the time spent sleeping? Are these likely to be
correlated with totwrk?
Transcribed Image Text:46) The following model is a simplified version of the multiple regression model used by Biddle and Hamermesh (1990) to study the trade-off between time spent sleeping and working and to look at other factors affecting sleep: sleep = Bo + B₁totwrk + ß₂educ + ß3age +u, where sleep and totwrk (total work) are measured in minutes per week and educ and age are measured in years. (i) If adults trade off sleep for work, what is the sign of f₁? (ii) What signs do you think ₂ and 3 will have? (iii) Using the data in SLEEP75, the estimated equation is sleep = 6,241.15 + 0.211totwrk + 9.22educ + 1.67age n = 211, R² = 0.981 If someone works five more hours per week, by how many minutes is sleep predicted to fall? Is this a large tradeoff? (iv) Discuss the sign and magnitude of the estimated coefficient on educ. (v) Would you say totwrk, educ, and age explain much of the variation in sleep? What other factors might affect the time spent sleeping? Are these likely to be correlated with totwrk?
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