Practical_3.pdf - Econ 2007 Practical Lecture 3 Monday 30...

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Econ 2007 Practical Lecture 3 Monday 30 November 2015 Exercises 1. The body-mass index (BMI, or variable bmi ) compares a person’s weight and height, and is defined as the ratio of a person’s weight in kg and the square of height (in m). A bmi greater than 25 is often used as an indicator of overweight. To investigate the relation between body-mass index (bmi) and the number of times people typically engage in sports per week (nsport), researchers have been estimating this linear regression: bmi = β 0 + β 1 nsport + u Consider the following regression output for higher educated individuals in their 30s: . reg bmi nsport Source | SS df MS Number of obs = 5812 -------------+------------------------------ F( 1, 5810) = 14.48 Model | 136.618659 1 136.618659 Prob > F = 0.0001 Residual | 54832.867 5810 9.43767074 R-squared = 0.0025 -------------+------------------------------ Adj R-squared = 0.0023 Total | 54969.4857 5811 9.45955699 Root MSE = 3.0721 ------------------------------------------------------------------------------ bmi | Coef. Std. Err. t P>|t| [95% Conf. Interval] -------------+---------------------------------------------------------------- nsport | -.1388576 .0364962 -3.80 0.000 -.2104037 -.0673116 _cons | 23.31378 .0624587 373.27 0.000 23.19134 23.43622 ------------------------------------------------------------------------------ (a) Interpret the estimated coefficients in this regression (b) Do you interpret the coefficient on ’nsport’ in a causal (everything else equal) way?
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