A problem of interest to health officials (and others) is to determine the effects of smoking during
Question:
Bwght = (0 + (1cigs + (2 famnic + u.
(i) What is the most likely sign for (2?
(ii) Do you think cigs and famine are likely to be correlated? Explain why the correlation might be positive or negative.
(iii) Now, estimate the equation with and without famine, using the data in BWGHT .RAW. Report the results in equation form, including the sample size and R-squared. Discuss your results, focusing on whether adding famine substantially changes the estimated effect of cigs on bwght.
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Related Book For
Introductory Econometrics A Modern Approach
ISBN: 978-0324660548
4th edition
Authors: Jeffrey M. Wooldridge
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