Problem Set 1 Answer
SOLUTIONS TO PROBLEMS
2.4 (i) When cigs = 0, predicted birth weight is 119.77 ounces. When cigs = 20, bwght = 109.49. This is
about an 8.6% drop.
(ii) Not necessarily. There are many other factors that can affect birth weight, particu

Problem Set 2 Answer
SOLUTIONS TO PROBLEMS
3.4 (i) A larger rank for a law school means that the school has less prestige; this lowers starting
salaries. For example, a rank of 100 means there are 99 schools thought to be better.
(ii) 1 > 0, 2 > 0. Both L

Problem Set 3 Answer
SOLUTIONS TO PROBLEMS
4.2
(i) H0: 3 = 0. H1: 3 > 0.
(ii) The proportionate effect on salary is .00024(50) = .012. To obtain the percentage effect, we
multiply this by 100: 1.2%. Therefore, a 50 point ceteris paribus increase in ros is