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The following model is a simplified version of the multiple regression model used by Biddle and Hamermesh (1990) to study the tradeoff between time spent sleeping and working and to look at other factors affecting sleep:sleep =b0 + b1totwrk + b2educ + b3age + 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 b1?(ii) What signs do you think b2 and b3 will have?
(iii) Using the data in SLEEP75.RAW, the estimated equation is sleep = 3,638.25 - .148 totwrk - 11.13 educ + 2.20 age n =706, R^2 = .113.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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GDP only raise by three quarters of the expected amount. Illustrate what factors might be responsible for this situation.
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