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Scaling variables

Suppose $we$ issue the following commands $in$ stata. The information needed $to$ finish this question $(regression$ tables and

summary statistics$)is$ given $in$ the previous question

Stata Chunk: $5$

gen income$2=$income$*1000$

gen lincome$2=log(income2)$

gen packs$=$cig$\frac{s}{20}$

$(a)$ Suppose $we$ run a regression $of$

cigs ${?}_{(}()i)={}_o+{}_1$ income ${?}_{(}()i)+lo{n}_i$

$i.(3$ points$)$ Calculate the value $of$ widehat$({)}_o$ and widehat$({)}_1$

Your Answer:

$ii.(2$ points$)$ What happens $to$ the fitted values and residuals $(explain)$