Workers used to be able to smoke inside office buildings. Smoking bans were introduced in several...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Workers used to be able to smoke inside office buildings. Smoking bans were introduced in several areas in the 1990's. Supporters of these bans argue that in addition to elim- inating the externality of secondhand smoke, they would encourage smokers to quit by reducing their opportunities to smoke. In this assignment, you will estimate the effect of workplace smoking bans on smoking, using data in the file Smoking on 10,000 U.S. indoor workers from 1991 to 1993. The data set contains information on whether individuals were or were not subject to a workplace smoking ban, whether the individuals smoked, and other characteristics. A detailed description is given in Smoking_Description.pdf. Report all your regression results in a single table. (a) Estimate the probability of smoking for (i) all workers, (ii) workers affected by smoking bans, and (iii) workers not affected by smoking bans. This can be done using an "if" statement if using Stata, or by separating each group and estimating the model three times. (b) What is the difference in probability of smoking between workers affected by a workplace smoking ban and workers not affected by a ban? Use a linear probability model to determine whether this difference is statistically significant. This means regressing smoker on smkban to determine if the coefficient on smoker is statisti- cally significant. Does your answer agree with your results from part (a)? (c) Estimate a linear probability model with smoker as the dependent variable and the following regressors: smkban, female, age, age, hsdrop, hsgrad, colsome, colgrad, black, and hispanic. Compare the estimated effect of a smoking ban from this regression with your answer from (b). Suggest an explanation, based on the substance of this regression, for the change in the estimated effect of a smoking ban. between (b) and (c). Note: the data set does not have age, you will need to create this variable. If Using Stata, the command is: generate agesq=age age. (d) Test the hypothesis that the coefficient on smkban is zero in the regression from part (c) against the two-sided alternative at the 5% level. (e) Does the probability of smoking increase or decrease with education? Is it statisti- cally significant? (f) Repeat (c)-(e) using a probit model. The Stata command is: probit y 21 22 ... (g) Repeat (c)-(e) using a logit model. The Stata command is: logit y r₁ r2... Ik For the follow parts, it is helpful organize the results in an Excel spreadsheet and calculate the probabilities using simple formulas. Remember to use the cumulative normal distribution for probit results and the logistic for the logit results. i. Suppose you have a white male, non-hispanic, 20-year old, high school drop out. Using the results from the probit regression and assuming that this per- son is not subject to a workplace smoking ban, calculate the probability that this person smokes. What is the effect of the smoking ban on the probability of smoking? ii. Repeat part (i) for a female, black, 40-year old college graduate. iii. Repeat parts (i) and (ii) using the linear probability model. Comment on the differences between the probit, logit, and linear probability results. Workers used to be able to smoke inside office buildings. Smoking bans were introduced in several areas in the 1990's. Supporters of these bans argue that in addition to elim- inating the externality of secondhand smoke, they would encourage smokers to quit by reducing their opportunities to smoke. In this assignment, you will estimate the effect of workplace smoking bans on smoking, using data in the file Smoking on 10,000 U.S. indoor workers from 1991 to 1993. The data set contains information on whether individuals were or were not subject to a workplace smoking ban, whether the individuals smoked, and other characteristics. A detailed description is given in Smoking_Description.pdf. Report all your regression results in a single table. (a) Estimate the probability of smoking for (i) all workers, (ii) workers affected by smoking bans, and (iii) workers not affected by smoking bans. This can be done using an "if" statement if using Stata, or by separating each group and estimating the model three times. (b) What is the difference in probability of smoking between workers affected by a workplace smoking ban and workers not affected by a ban? Use a linear probability model to determine whether this difference is statistically significant. This means regressing smoker on smkban to determine if the coefficient on smoker is statisti- cally significant. Does your answer agree with your results from part (a)? (c) Estimate a linear probability model with smoker as the dependent variable and the following regressors: smkban, female, age, age, hsdrop, hsgrad, colsome, colgrad, black, and hispanic. Compare the estimated effect of a smoking ban from this regression with your answer from (b). Suggest an explanation, based on the substance of this regression, for the change in the estimated effect of a smoking ban. between (b) and (c). Note: the data set does not have age, you will need to create this variable. If Using Stata, the command is: generate agesq=age age. (d) Test the hypothesis that the coefficient on smkban is zero in the regression from part (c) against the two-sided alternative at the 5% level. (e) Does the probability of smoking increase or decrease with education? Is it statisti- cally significant? (f) Repeat (c)-(e) using a probit model. The Stata command is: probit y 21 22 ... (g) Repeat (c)-(e) using a logit model. The Stata command is: logit y r₁ r2... Ik For the follow parts, it is helpful organize the results in an Excel spreadsheet and calculate the probabilities using simple formulas. Remember to use the cumulative normal distribution for probit results and the logistic for the logit results. i. Suppose you have a white male, non-hispanic, 20-year old, high school drop out. Using the results from the probit regression and assuming that this per- son is not subject to a workplace smoking ban, calculate the probability that this person smokes. What is the effect of the smoking ban on the probability of smoking? ii. Repeat part (i) for a female, black, 40-year old college graduate. iii. Repeat parts (i) and (ii) using the linear probability model. Comment on the differences between the probit, logit, and linear probability results.
Expert Answer:
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Estimate the probability of some event in your life using a personal probability, such as the probability that a person who passes you on the street will be wearing a hat, or the probability that...
-
Estimate the probability of getting at least 55 girls in 100 births.
-
Estimate the probability of getting exactly 32 boys in 64 births.
-
Estimate the cash value of a life insurance policy as of December 31, 2016 based on the following information: Cash value as of January 2016 $90,000 Total premium during the year $ 8,000 Term life...
-
Because many passengers who make reservations do not show up, airlines often overbook flights (sell more tickets than there are seats). A Boeing 767-400ER holds 245 passengers. If the airline...
-
During a weather report, a meteorologist claims that the median daily high temperature for the month of January in San Diego is \(66^{\circ}\) Fahrenheit. The high temperatures (in degrees...
-
Dun Horse and Associates, a firm of real estate agents, had the following transactions represented during September: 1 Arranged a sale of an apartment building owned by a client. The commission for...
-
A paper in the Journal of the Association of Asphalt Paving Technologists (Vol. 59, 1990) describes an experiment to determine the effect of air voids on percentage retained strength of asphalt. For...
-
Calumet Company has no beginning work in process; 12,000 units are transferred out and 6,000 units in ending work in process are 40% finished as to conversion costs and fully complete as to materials...
-
A sequential circuit is given in Figure 4-13. Figure 4-13 (a) Add the necessary logic and/or connections to the circuit to provide an asynchronous reset to state A = 1, B = 0 for signal Reset = 0....
-
The form sent to the supplier to order goods is called a(n) __ O receiving report. purchase order. purchase requisition. purchase invoice.
-
What are the key characteristics of System 4 management? How does adoption of System 4 management influence the process of change in an organization?
-
Job characteristics model, developed by Richard Hackman and Greg Oldham, describes jobs in terms of 5 characteristics what is not a characteristic?
-
What two characteristics do group / team techniques have in common?
-
Galtier Health Center is a nursing home in Minnesota, a state with the second largest Hmong population in the United States, behind only California (Pfeifer et al. 2013). The Hmong population...
-
1. What market characteristics make it unlikely that pragmatists will easily follow the role model of visionaries? 2. Relate the PLC and the chasm with particular emphasis on the market factors that...
-
Corporation manufactures three products from a joint process. The three products are in industrial grade form at the split- off point. They can either be sold at that point or processed further into...
-
Use critical values to test the null hypothesis H0: 1 2 = 20 versus the alternative hypothesis H0: 1 2 20 by setting a equal to .10, .05, .01, and .001. How much evidence is there that the...
-
For each of the following situations, would a chi-square test based on a 232 table using a level of 0.01 be statistically significant? Justify your answer. a. chi-square statistic 5 1.42 b....
-
Construct an example, and draw a histogram for a measurement that you think would be skewed to the right.
-
Design and carry out a study to test the proposition that men have lower resting pulse rates than women.
-
Identify the issues related to performance evaluation using DCF models.
-
Identify relevant cash flows for DCF analyses.
-
Andrea Boss, Inc. is interested in using its activity-based costing system to improve its operating efficiency and its profit margins by applying activity-based management techniques. As part of this...
Study smarter with the SolutionInn App