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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 childrenâ€™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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