Thank You for Smoking?You are interested in the effect of a new smoking restriction implemented by restaurants. That is, theeffect of restaurants implementing a no-smoke zone within 15 feet of their premises on the numberof packs of cigarettes smoked per day. You first run the following regression:cigs BoBieduc + B₂income+=+ B3age²+ B4restaurn + B5 ln(cigprice) + uWhere cigs is the number of cigs smoked per day, education is the number of years of formalschooling, income is annual income, in terms of 1000s, age is in years, restaurn is a dummy variable =1 if the restaurant implemented this new smoking policy, and In(cigprice) is the log of the cigaretteprice.You get the following regression printout:SourceModelResidualTotalcigseducincomeSS3546.27245148207.41151753.683dfagesqrestaurnlcigpric -.0307437_cons5801Coef. Std. Err.806-.4027925.0001243-.0007576.000312-2.990738 1.129767.1694947.0000559Answer the following questions.13.68142 23.94006MS709.254491185.027978188.280003Number of obsF(5, 801)Prob > FR-squaredAdj R-squaredRoot MSEt P>|t|-2.43 0.015-2.65 0.008-0.01 0.9960.57 0.568====(INCREASE or DECREASE) in the number of cigarettes smoked, per day, by8073.830.001913.602[95% Conf. Interval]-.0013699 -.0001452-5.208391 -.7730854-11.51362-33.3112511.4521360.67409A. Calculate R²Do NOT include the % symbol.B. How many explanatory variables are statistically significant at the 90% level of confidence. Writethe number of your answer.C. Interpret 34. Complete the following sentence."Restaurants that implemented the new smoking policy saw an expectedRound to 2 decimal places. Leave your answer as a percentage.Note: 1st box is either INCREASE or DECREASE. 2nd box is a value, ROUND TO A WHOLENUMBER. Be careful when completing the sentence and mindful of how to read negative signs.D. Using ONLY the information available to you from this question, does this regression suffer froman obvious omitted variable bias? Answer "YES" or "NO".E. If this model is suffering from omitted variable bias, what variable do we need to include? If thereis no bias, write "NONE".

Given regression equation cigs=β0+β1educ+β2income+β3age2+β4restaurn+β5ln(cigprice)+μFrom the…

You are interested in the effect of a new smoking restriction implemented by restaurants. That is, the effect of restaurants implementing a no-smoke zone within 15 feet of their premises on the number of packs of cigarettes smoked per day. You first run the following regression: cigs Bo B₁educ + B₂income+ + Brage²+ Barestaurn + Bln(cigprice) + u

You are interested in the effect of a new smoking restriction implemented by restaurants. That is, the effect of restaurants implementing a no-smoke zone within 15 feet of their premises on the number of packs of cigarettes smoked per day. You first run the following regression: cigs Bo B₁educ + B₂income+ + Brage²+ Barestaurn + Bln(cigprice) + u

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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