Question

In a regression of family health expenditures on pesticide usage among farmers one should not control for the size of family (the number of members in the household)

True or False? Why?

Answer 1

We want to check if familiy health expenditure is affected by pesticide usage or not . Obviously we need to unify Family health expenditure , otherwise we won't be able to compare . Suppose there are too many families with large family size , then the health expenditure goes up independently of pesticide usage . So, we won't be able to understand whether the increase in expenditure would be due to family size or regression . To curb this affect , we need to calculate per capita expenditure , to know if it is really affected by pesticide usage .

So, Answer is FALSE