QUESTION – SMOKING DURING PREGNANCY
Create a .do file named ps6.do to help answer the following questions. In addition to answering the questions below, submit your Stata output in the form of a .log file.
This question uses the dataset smoking.dta which we will use to analyze the relationship between smoking by mothers and their children’s health outcomes as measured by birthweight.
(a) Consider a regression of birthweight on family income and smoker (a binary variable which indicates whether a mother smoked at all during pregnancy). What is the predicted impact of having a smoking mother on birthweight for a family with an income of $60,000? What about if you also include an interaction term between the two independent variables?
(b) The medical definition of low birthweight is a birthweight of less than or equal to 88 ounces (2500 grams or 5.5 lbs). What is the relationship between being a smoker and having a newborn with low birthweight? Discuss the magnitudes both in terms of percentage points as well as percent.
(c) Add the (natural) logarithm of family income as a control variable in the regression from (b). Assuming a family income of $30,000, how does your result change? Also interpret the coefficient on the control variable.
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