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Econometrics Solutions Project Econ2206

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Econometrics Solutions Project Econ2206
ECON2206/ECON3290: Introductory Econometrics Session 1, 2009 Course Project Solution Guide
Each question is worth 1 mark - and there are 20 questions in total. Answers should be clear and legible. Note Instruction (d) on the Questions: “when performing statistical tests, to always state the null and alternative hypotheses, the test statistic and it’s distribution under the null hypothesis, the level of significance and the conclusion of the test.” Marks are not awarded when this instruction is not followed.

Questions
The Project involves the application of a range of econometric methods to analyse the impact of women’s tobacco consumption during pregnancy on infant birthweight. The data used in the analysis, BWGHT.RAW, has 278 rows and 7 columns. The columns corresponds to bwght (baby’s birthweight measured in grams), smoker (equal to 1 if the mother smoked during pregnancy, 0 otherwise), cigs (average number of cigarettes smoked per day by the mother during pregnancy), meduc (mother’s education measured in years), nanatal (total number of antenatal [prior to birth] visits to a health professional), drink (average number of standard drinks of alcohol consumed per day during pregnancy), and apgar score (summary of infant health measured at birth, with values between 0 and 10).

Descriptive Statistics for the Sample
(1) What is the average, minimum, and maximum value and standard deviation of child birthweight, mother’s education, number of antenatal visits and apgar score in the BWGHT.RAW sample? average minimum maximum standard deviation bwght 3450.7 1909.0 4990.0 493.18 meduc 13.799 8.0 17.0 2.0240 nanatal 11.914 3.0 36.0 3.9031 apgar 8.3273 3.0 10.0 1.0147

(2) What is the average number of cigarettes smoked per day for the sample ? What fraction of the sample reported smoking during pregnancy (use the indicator variable smoker to determine this) ? Among women who smoked, what is the average number of cigarettes smoked per day ? Given these values, is

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