Assignment Task
Task
1. Suppose we are investigating the impact of exercising at a gym on blood pressure (bp). We
expect any exercise to lower bp, but we focus on gym exercise, and construct the following model:
bpi = b0 + b1 Femalei + b2 agei + b3 age2
i + b4 gym_exi* + ui (eq. 1)
Where bp is a continuous variable measuring systolic blood pressure in mm Hg (we later test with
diastolic bp). For a measure of gym exercise, the survey asks respondents how many hours they
spent exercising at a gym in the past year. Suppose we expect gym_ex* is measured with error, ei.
a)What assumption are we making if we assume classical-errors-in-variables(CEV)in this model.
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