Construct a 95% confidence interval for your answer.The 95% confidence interval for the number of lives that would be saved over the next year is(Round your response to two decimal places)The drinking age in New Jersey is 21. Suppose that New Jersey lowered its drinking age to 18. Use the results in column (4) to predict the change in the number of traffic fatalities in the next year.Construct a 90% confidence interval for your answer.Construct a 90% confidence interval for your answer.The predicted (1)Round your response to two decimal places)(Round your response to two decimal places)Suppose that real income per capita in New Jersey increases by 1% in the next year. Use the results in column (4) to predict the change in the number of traffic fatalities in the next year.(1)increasedecreasein the number of traffic fatalities in the next year isThe predicted (2)increasedecrease(Round your response to two decimal places)The 90% confidence interval for the predicted increase in the number of traffic fatalities in the next year isin the number of traffic fatalities in the next year is(Round your response to two decimal places)Refer to the reported F-Statistics and p-values associated with testing for exclusion of group of variables. Should time effects be included in the regression?A. YesB. No.(Round your response to two decimal places)The 90% confidence interval for the predicted increase in the number of traffic fatalities in the next year isA researcher conjectures that the unemployment rate has a different effect on traffic fatalities in the western states than in the other states. How would you test this hypothesis?A. I would include a binary variable west (=1 if the state is in the west and 0 otherwise). Then, I would test if the estimated coefficient for the binary variable is significant at a reasonable level.B. I would include a binary variable west (=1 if the state is in the west and 0 otherwise), and an interaction term west* Unemployment rate. Then, I would test if the estimated coefficient for the interaction term is significant at a reasonablelevel.OC. I would include a binary variable west (=1 if the state is in the west and 0 otherwise), and an interaction term west* Unemployment rate. Then, I would test if the estimated coefficient for the binary variable west is significant at areasonable level.OD. I would compare the average number of fatalities in western states to the average number of fatalities in non-western states.Print 8. This exercise refers to the drunk driving panel data regression summarized below.Regression Analysis of the Effect of Drunk Driving Laws on Traffic DeathsDependent variable: traffic fatility rate (deaths per 10,000).Construct a 95% confidence interval for your answer.RegressorBeer taxDrinking age 18Drinking age 19Drinking age 20Drinking ageMandatory jail orcommunity service?Average vehiclemiles per driverUnemployment rateReal income per capita(logarithm)YearsState Effects?Time effects?Time effects=0(1)0.34*(0.042)Drinking age coefficients = 0Unemployment rate,income per capita = 0R²1982-88nonoyesyesClustered standard errors?yesyesF-Statistics and p-Values Testing Exclusion of Groups of Variables4.43(0.003)(2)(3)-0.62** -0.76***(0.22) (0.38)no1982-88 1982-88yesno(4)- 0.53(0.39)0.028(0.077)-0.021(0.059)0.037(0.051) (0.058)(5)-0.64**(0.31)-0.013(0.083)-0.074(0.068)- 0.105***0.043 0.078(0.115) (0.116)0.007(0.005)-0.063*0.018(0.013)(0.014)1.89*(0.69)1982-88yesyesyes10.51(<0.001)0.52(0.767)29.32(<0.001)0.9791982-88yesyesyes3.23(0.005)1.56(0.265)(6)-0.47(0.37)-0.003(0.022)0.037(0.103)0.008(0.005)-0.065*(0.013)1.59*(0.69)1982-88yesyesyes10.44(<0.001)31.25(<0.001)0.926(7)-0.91*(0.36)0.033(0.103)-0.071(0.103)- 0.115(0.127)0.094(0.164)0.128(0.047)- 0.094*(0.023)1.01(0.63)1982 & 1988onlyyesyesyes37.12(<0.001)0.54(0.749)25.05(<0.001)0.0970.8570.8310.8770.866These regressions were estimated using panel data for 48 U.S. states. Regressions (1) through (6) use data for all years1982 to 1988, and regression (7) uses data from 1982 and 1988 only. Standard errors are given in parentheses under thecoefficients, and p-values are given in parentheses under the F-statistics. The individual coefficient is statistically significantat the ***10%, **5%, or *1% significance level.New Jersey has a population of 6.9 million people. Suppose that New Jersey increased the tax on a case of beer by $1 (in 1988 dollars). Use the results in column (4) to predict the number of lives that would be saved over the next year.The predicted number of lives that would be saved over the next year is(Round your response to two decimal places)Print

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8. This exercise refers to the drunk driving panel data regression summarized below. Regression Analysis of the Effect of Drunk Driving Laws on Traffic Deaths Dependent variable: traffic fatility rate (deaths per 10,000). Construct a 95% confidence interval for your answer. Regressor Beer tax Drinking age 18 Drinking age 19 Drinking age 20 Drinking age Mandatory jail or community service? Average vehicle miles per driver Unemployment rate Real income per capita (logarithm) Years State Effects? Time effects? (1) 0.34* (0.042) 1982-88 (2) (3) -0.62** -0.76*** (0.22) (0.38) 3 3 3 (4) (5) (6) -0.53 -0.64" -0.47 (0.39) (0.31) (0.37) yes no 0.028 (0.077) -0.021 (0.059) 0.037 (0.051) 0.043 0.078 (0.115) (0.116) 0.007 0.018 (0.005) (0.013) -0.063* (0.014) 1.89* (0.69) 1982-88 1982-88 1982-88 1982-88 -0.013 (0.083) -0.074 (0.068) -0.105*** (0.058) yes yes yes yes yes yes -0.003 (0.022) 0.037 (0.103) yes yes Clustered standard errors? yes yes F-Statistics and p-Values Testing Exclusion of Groups of Variables Time effects=0 4.43 10.51 3.23 10.44 (0.003) (<0.001) (0.005) (<0.001) Drinking age coefficients = 0 Unemployment rate, income per capita = 0 0.52 1.56 (0.767) (0.265) 29.32 (<0.001) 0.979 R² 0.008 (0.005) -0.065* (0.013) 1.59* (0.69) 1982-88 yes yes yes 31.25 (<0.001) 0.926 (7) -0.91* (0.36) 0.033 (0.103) -0.071 (0.103) -0.115 (0.127) 0.094 (0.164) 0.128 (0.047) -0.094* (0.023) 1.01 (0.63) 1982 & 1988 only yes yes yes 37.12 (<0.001) 0.54 (0.749) 25.05 (<0.001) 0.097 0.857 0.831 0.877 0.866 These regressions were estimated using panel data for 48 U.S. states. Regressions (1) through (6) use data for all years 1982 to 1988, and regression (7) uses data from 1982 and 1988 only. Standard errors are given in parentheses under the coefficients, and p-values are given in parentheses under the F-statistics. The individual coefficient is statistically significant at the ***10%, **5%, or *1% significance level. New Jersey has a population of 6.9 million people. Suppose that New Jersey increased the tax on a case of beer by $1 (in 1988 dollars). Use the results in column (4) to predict the number of lives that would be saved over the next year. The predicted number of lives that would be saved over the next year is (Round your response to two decimal places) Print