ANSWERS TO PROBLEM SET 2 - ANSWERS PS2 2.4 (i) When cigs =...

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ANSWERS PS2 2.4 (i) When cigs = 0, predicted birth weight is 119.77 ounces. When cigs = 20, = 109.49. This is about an 8.6% drop. (ii) Not necessarily. There are many other factors that can affect birth weight, particularly overall health of the mother and quality of prenatal care. These could be correlated with cigarette smoking during birth. Also, something such as caffeine consumption can affect birth weight, and might also be correlated with cigarette smoking. (iii) If we want a predicted bwght of 125, then cigs = (125 – 119.77)/( –.524) –10.18, or about –10 cigarettes! This is nonsense, of course, and it shows what happens when we are trying to predict something as complicated as birth weight with only a single explanatory variable. The largest predicted birth weight is necessarily 119.77. Yet almost 700 of the births in the sample had a birth weight higher than 119.77. (iv) 1,176 out of 1,388 women did not smoke while pregnant, or about 84.7%. Because we are using only cigs
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This note was uploaded on 10/25/2010 for the course ECO Economics taught by Professor Hammermesh during the Fall '10 term at University of Texas at Austin.

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ANSWERS TO PROBLEM SET 2 - ANSWERS PS2 2.4 (i) When cigs =...

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