Question 1 Type the following command in Stata to load the SMOKE dataset: use http://fmwww.bc.edu/ec-p/data/wooldridge/smoke, clear...

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Question 1 Type the following command in Stata to load the SMOKE dataset: use http://fmwww.bc.edu/ec-p/data/wooldridge/smoke, clear a) We're interested in the possibility that living in a state with restaurant smoking bans may affect smoking behavior. Using a simple regression model, test the hypothesis that mean cigarettes smoked per day (cigs) is the same for those living in states with (restaurn=1) and without (restaurn=0) restaurant smoking bans. NOTE: For all of the hypothesis tests throughout the problem set, be sure to provide: a null & alternative hypotheses, the test distribution & statistic, a rationale for accepting or rejecting, and an interpretation of the result. Throughout the question, assume that MLR.1 through MLR.5 hold, assume n is large, and use a significance level of 5%. b) Rich states may be more likely to adopt anti-smoking policies than poor states, so those living in states with restaurant smoking bans may have higher incomes. To address this concern, repeat the test you conducted in part (a), but this time test that the means are equal conditional on the respondent's income (income), which is measured in dollars per year. Question 1 Type the following command in Stata to load the SMOKE dataset: use http://fmwww.bc.edu/ec-p/data/wooldridge/smoke, clear a) We're interested in the possibility that living in a state with restaurant smoking bans may affect smoking behavior. Using a simple regression model, test the hypothesis that mean cigarettes smoked per day (cigs) is the same for those living in states with (restaurn=1) and without (restaurn=0) restaurant smoking bans. NOTE: For all of the hypothesis tests throughout the problem set, be sure to provide: a null & alternative hypotheses, the test distribution & statistic, a rationale for accepting or rejecting, and an interpretation of the result. Throughout the question, assume that MLR.1 through MLR.5 hold, assume n is large, and use a significance level of 5%. b) Rich states may be more likely to adopt anti-smoking policies than poor states, so those living in states with restaurant smoking bans may have higher incomes. To address this concern, repeat the test you conducted in part (a), but this time test that the means are equal conditional on the respondent's income (income), which is measured in dollars per year.