Suppose that real income per capita in New Jersey increases 1% in the next year. Use the results in column (4) to predict the change in number in traffic fatalities in the next year.The predicted (increase /or/ decrease) in the number of traffic fatalities in the next year is:Construct a 90% confidence interval for your answer.The 90% confidence interval for the (increase/ or/ decrease) in the number of traffic fatalities in the next year is: Regression Analysis of the Effect of Drunk Driving Laws on Traffic DeathsDependent variable: traffic fatility rate (deaths per 10,000).Regressor(1)0.38*(0.075)(2)- 0.76**(0.24)(3)(4)-0.60*** -0.41(5)-0.75**(6)(7)- 1.05*(0.31)0.031-0.42Beer tax(0.33)- 0.013(0.081)-0.079(0.089)(0.38)(0.34)(0.34)0.024Drinking age 18(0.108)-0.082(0.104)(0.073)-0.024Drinking age 19(0.056)0.030(0.051)-0.107***-0.114Drinking age 20(0.050)(0.128)- 0.004Drinking age(0.023)0.036Mandatory jail orcommunity service?Average vehiclemiles per driver0.044(0.103)0.000(0.005)- 0.069(0.016)1.68*0.0840.094(0.118)(0.105)(0.182)0.123(0.045)- 0.002*(0.021)0.0190.008(0.003)- 0.082*(0.018)(0.011)Unemployment rateReal income per capita(logarithm)1.81*1.02(0.75)(0.68)(0.0)Years1982-88 1982 & 19881982-881982-881982-881982-881982-88State Effects?Time effects?onlyyesyesпоyesyesyesyesyesnoпоyesyesyesyesClustered standard errors?noyesyesyesyesyesyesF-Statistics and p-Values Testing Exclusion of Groups of Variables4.3810.663.9410.7737.03Time effects = 0(0.003) (<0.001)(0.002)(<0.001)(<0.001)0.481.570.43Drinking age coefficients = 0(0.704)29.37(0.226)(0.768)25.28Unemployment rate,income per capita = 031.22(<0.001)(<0.001)(<0.001)0.0010.8050.8230.9900.8440.9050.803These 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.

Co-efficient of Real income per capita and the variance are 1.68 and 0.75 respectively.If Real Income per capita increases by 1%, Traffic fatalities will increase by 1.68 * 1% ie by 1.68% or by 0.0168 1.68% of 10,000 = 168 The predicted (increase /or/ decrease) in the number of traffic fatalities in the next year is: 168 The confidence interval for the change in death rate will be given by: CI = Pointestimate ± Z1-0.12×Standard errorCI = 1.68 ± 1.645×0.75CI = 1.68±1.23375CI = (1.68-1.23375 , 1.68 + 1.23375)CI =(0.44625, 2.91375) 0.44625% of 10,000 = 44.625 ≅45 2.91375% of 10,000 = 291.375≅291 The 90% confidence interval for the (increase/ or/ decrease) in the number of traffic fatalities in the next year is: (45, 291)