2 The following equations were estimated using the data in BWGHTRAW; log(bwght)=

Question

2 The following equations were estimated using the data in BWGHTRAW; log(bwght)= 4.66-.0044 cigs + .0093 log(farninc) + .016 parity (22) (0009) 0059) .006) +.027 male + .055 white .010) .013) n 1,388, R20472 AZ Rights Reserved May nn be copied scanned or duplicated, in whole or in part Due electronic r ghts, some third pny content may be suppressed from he eBook and or eChaptens), Edin nal review h CHAPTER 7 Multiple Regression Analysis with Qualitative Information 259 and log(bwght)= 4.65-.0052 cigs + .0110 log(Jaminc) + .017 parity (.006) (.38) (.0010) (.0085) + .034 male + .045 white-.0030 motheduc + .0032 fatheduc (.015) (0030) .0026) n 1,191, R0493 The variables are defined as in Example 4.9, but we have added a dummy variable for whether the child is male and a dummy variable indicating whether the child is classified as white. (i) In the first equation, interpret the coefficient on the variable cigs. In particular, what is the effect on birth weight from smoking 10 more cigarettes per day? ii) How much more is a white child predicted to weigh than a nonwhite child, holding the other factors in the first equation fixed? Is the difference statistically significant? iii) Comment on the estimated effect and statistical significance of motheduc (iv) From the given information, why are you unable to compute the F statistic for joint significance of motheduc and fatheduc? What would you have to do to compute the F statistic?

Explanation / Answer

i) The coefficient of cigs is -0.0044 and the p value is 0.0009 and as it is <0.05, the variable is significant and there exists a relationship between cigs and weight. for 10 more cigarettes log(weight) reduces by 0.044 or weight reduces by exp(-0.044) by 0.9569.

ii) For white, the p value is 1.3<5% thus it is significant and the corresponding weight difference is exp(0.055)=1.056.

iii)For mathedu, p value is 0.3% which is less than 5%, hence it is significant.

iv)For the joint significance of mathedu and fathedu, to compute the F statistic we need the contribution of these two variables to the overall variance. But in the data total variance in terms of R^2 is given.

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