Effect of Maternal Smoking During Pregnancy on Birth Weight Using Stata Assignment

Assignment Task

Use the dataset bwght.xls to answer the following questions. Copy and paste data into Stata data editor, otherwise you may encounter error message when running regression.

1. CDC official website reports that one in every five babies born to mothers who smoke during pregnancy has low birth weight. (If you want to know more, here is the link.Use the variables listed below to specify an econometric model that studies how a baby’s birth weight might be affected by the amount of cigarettes smoked during his/her mother’s pregnancy.

   • Variables to be used: bwght, cigs, faminc, motheduc, fatheduc, male, white.

2. Report your finding. Does smoking have a statistically significant impact on babies’ birth weights? Present evidence to support your conclusion.

3. Report your finding. Quantitatively comment on the effect of smoking on babies’ birth weight. (Hint: interpret the parameter estimate).

4. Use your model to predict the birth weight of a white male baby whose mother does not smoke, whose family income is $30,000, whose mother has 14 years of education and father has 16 years of education. (Note: check the excel file for the unit of measurement for the variables used in your model)

5. Report the predicted value for the 1 ^st observation and explain briefly how you get the predicted value. (If you use Stata to generate it, report the Stata command.)

6. Report the 99% confidence interval for the parameter of cigs. Describe its meaning or what this information tells you.

7. Report the R ² and describe its meaning.

8. Is family income statistically significant at the 5% level? Present evidence to support your conclusion.

9. Are parents’ education jointly significant at the 5% level? Present evidence to support your conclusion.

10. Does father education and mother education have the same impact on baby’s birth weight? (Use 5% significance level). Present evidence to support your conclusion.

11. Is there perfect collinearity issue in the model? Provide your reasoning.

12. Explain what multi-collinearity means. Is there multi-collinearity issue in the model? Present evidence to support your conclusion.

13. Explain what heteroskedasticity means.

14. What problems does heteroskedasticity cause in econometric analysis?

15. Is there heteroskedasticity issue in this model? Present evidence to support your conclusion.

16. Generate robust standard errors for the OLS coefficient estimates.

This Data Analysis has been solved by our PhD Experts at My Uni Paper.