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 α=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.
| βage | βfemale | βNumOfHealthCond | |
| H0: | |||
| HA: | |||
| p-value | |||
| α-sign.level | 5% | 1% | 10% |
| Decision: |
(3 points) What is the lowest level of α 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%.
