You have been asked to interpret a classmate\'s work on the determinants of ciga
ID: 3322568 • Letter: Y
Question
You have been asked to interpret a classmate's work on the determinants of cigarette smoking. Your classmate estimated a Linear Probability Model where the dependent variable is equal to 1 if an individual smokes cigarettes and 0 if an individual does not smoke cigarettes. The classmate examined whether cigarette taxes (cigtax), cigarette prices (cigprice), whether or not the individual was white (white), and the logarithm of family income (Ifaminc) influenced smoking for the individuals in the sample. . Your classmate argues that the while the coefficient on cigarette prices is not statistically significant, the positive sign on the coefficient leads to the conclusion that increases in cigarette prices do not deter smoking. Comment on your classmate's argument and whether there is empirical evidence to support this conclusion. (5 Points)Explanation / Answer
A.
I support my classmate as p value for the coefficient of price is 0.799 that is significant. mean there is no impact of price on an individual who smoking or not. and also its have +ve coefficient also has no impact on the model.
B.
yes, a classmate has correct decision.
as families income coefficient is -0.749 mean increase 1 unit in income there is a significant impact on individual smoke or not as pvalue is 0.00 and that impact was it will decrease with 0.7 approx.
so, families income increase wi 1% than predicted likelihood decrease with 7 % as coefficient have -ve sigh.
C.
no,
the white individual in the sample 5% more likely to smoke then the nonwhite individual in the sample.
as the coefficient is 0.049=0.05 approximately.
as in output coefficient of white smoke is 0.049 while the non-white smoker is in reference.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.