5 New Jersey has a population of 7.6 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 thenext year.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.The predicted number of lives that would be saved over the next year is(Round your response to two decimal places)Construct a 90% confidence interval for your answer.The predicted (1)OA. YesOB. No.in the number of traffic fatalities in the next year is(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 is1.Suppose that real income per capita in New Jersey increases by 1% in the next year. Use the resultsThe predicted (2)(Round your response to two decimal places)column (4) to predict the change in the number of traffic fatalities in the next year.in the number of traffic fatalities in the next year is(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 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 e included in the regression? 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).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?(1)0.37*(0.089)Time effects=01982-881982-88yesyesClustered standard errors?yesyesF-Statistics and p-Values Testing Exclusion of Groups of Variables4.62(0.004)nono(2)(3)(4)-0.71** -0.61*** -0.43(0.37) (0.35) (0.39)0.021(0.072)-0.024(0.056)no1982-88yesno0.045(0.112)0.008(0.009)-0.083(0.073)0.038 -0.109***(0.052) (0.053)-0.061*(0.014)1.61*(0.71)1982-88yesyesyes(5)-0.61**(0.32)10.63(<0.001)-0.015(0.089)0.075(0.119)0.011(0.012)1982-88yesyesyes(6)-0.44(0.37)-0.005(0.021)0.034(0.106)0.006(0.004)-0.065*(0.014)1.79*(0.64)1982-88yesyesyes3.0310.62(0.002) (<0.001)(7)-0.96*(0.39)31.36(<0.001)0.038(0.107)-0.066(0.102)-0.115(0.134)0.095(0.166)0.125(0.054)-0.097*(0.022)1.03(0.65)1982 & 1988onlyyesyesyes37.78(<0.001)0.57(0.724)25.44(<0.001)1.42Drinking age coefficients = 00.54(0.751) (0.203)29.88(<0.001)Unemployment rate,income per capita = 0R²0.0960.8620.8510.9470.8970.9590.822These 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 underthe coefficients, and p-values are given in parentheses under the F-statistics. The individual coefficient is statisticallysignificant at the ***10%, **5%, or *1% significance level.

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Regression Analysis of the Effect of Drunk Driving Laws on Traffic Deaths Dependent variable: traffic fatility rate (deaths per 10,000). 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? Clustered standard errors? (1) 0.37* (0.089) no no (2) (3) (4) -0.43 -0.71** -0.61*** (0.37) (0.35) (0.39) 0.021 (0.072) -0.024 (0.056) 0.038 (0.052) no yes no ves 0.045 (0.112) yes yes ves 0.008 (0.009) -0.061* (0.014) 1.61* (0.71) 1982-88 1982-88 1982-88 1982-88 1982-88 (5) -0.61** (0.32) -0.015 yes yes Yes (0.089) -0.083 (0.073) -0.109*** (0.053) 0.075 (0.119) 0.011 (0.012) yes yes ves (6) -0.44 (0.37) -0.00 (0.021 0.034 (0.106- 0.006 (0.004 -0.065 (0.014 1.79* (0.64) 1982-8 yes yes ves