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An Economist Wants to Study the Effect of Income on Savings

question 25

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An economist wants to study the effect of income on savings. He collected data on 120 identical twins. Which of the following methods of estimation is the most suitable method, if income is correlated with the unobserved family effect?


Definitions:

Melanocyte-Stimulating Hormone

A peptide hormone produced in the pituitary gland that plays a role in the production and release of melanin in the skin, influencing skin and hair pigmentation.

Thyrotropin

A hormone, also known as thyroid-stimulating hormone (TSH), produced by the pituitary gland to regulate thyroid function.

Hormone

Chemical substances produced in the body that control and regulate the activity of certain cells or organs.

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