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# Question 6 (30 points): Using data set provide for the PS1_Fall 2018, estimate linear probability…

Question 6 (30 points): Using data set provide for the PS1_Fall 2018, estimate linear probability model of smoking as a function of age, gender, and the number of chronic health conditions:

a= age

f= female

N= Num of Health Condition

(12 points) Interpret coefficients and discuss statistical significance at Î±=1%

(2 points) Interpret and discuss adjusted R-2:

(1 point) Predict the probability of smoking for a 75 year old women with 2 chronic health conditions.

(12 points) State your hypothesis and perform one sided hypothesis testing using p-values. The significance level is provided for each variable. Fill in the table.

 Î²age Î²female Î²NumOfHealthCond H0: HA: p-value Î±-sign.level 5% 1% 10% Decision:

(3 points) What is the lowest level of Î± at which you can reject the null hypothesis for the coefficients of the variables above: Age, Female, Number of Health Conditions (one sided test)? Hint: Use p-values. Please remember that we consider a rejection up to 10%.

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