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Econometrics , statistics, Basic Statistics
Use the data in the BWGHT.txt for this question. The variable descriptions are given in
the file BWGHT_variables.txt. There are 1388 observations in this dataset.
(a) Run the regression
0 1 BWGHT ? ? ?? CIGS ?? .
Report and interpret your results.
(b) To what extent can you view this regression as capturing a causal relationship between
the child’s birthweight and the mother’s smoking habits? Are there any other variables
that may be correlated with CIGS that may explain BWGHT ?
(c) What is the predicted BWGHT when CIGS ? 0 ? What is the predicted BWGHT when
CIGS ? 20? Include standard errors in your predictions.
(d) Test the hypothesis that
(i) 0 1 H :? ? 0 vs 1 : 0 A H ? ?
(ii) 0 1 H :? ? ?1 vs 1 : 1 A H ? ? ?
(iii) 0 1 H :? ? 0 vs 1 : 0 A H ? ?
For part (ii), show how you can compute the tstatistic from the parameter estimate and
the parameter standard error. Show also how you can reparameterize the equation so that
EVIEWS will generate the desired tstatistic automatically. Verify that both methods give
you the same tstatistic.
Posted Date: 2/27/2012 4:58:07 AM  Location : United States
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