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d) If you were a policy maker trying to reduce mortality rate among Americans, would you recommend vaccination or 2 more years of schooling (assuming
d) If you were a policy maker trying to reduce mortality rate among Americans, would you recommend vaccination or 2 more years of schooling (assuming that your results are trustworthy)? Assume that flu vaccine cost about $40 and 1 more years of schooling cost $5,000. SHOW YOUR WORK!Question 6: You estimated the following linear probability model explaining probability of dying in the next 5 years as a function of age, education, number of health conditions and whether a person had a flu shot: reg dead_5 age flu_shot raedyrs num_hconditions Source SS df MS Number of obs 19 , 316 F (4, 19311) 943 . 60 Model 405 . 127386 4 101 . 281846 Prob > F 0 . 0000 Residual 2072 . 75846 19, 311 . 107335636 R-squared 0. 1635 Adj R-squared 0 . 1633 Total 2477 . 88585 19, 315 . 128288162 Root MSE . 32762 dead_5 Coef. Std. Err. t P> | t/ [95% Conf. Interval] age 0108443 0002249 48 . 21 0. 000 0104034 0112852 flu_shot -. 0168997 0051667 -3.27 0 . 001 - . 0270269 -. 0067725 raedyrs -. 0054036 0007271 - 7. 43 0. 000 -. 0068287 -. 0039785 num_hconditions . 0356287 . 0019945 17 . 86 0. 000 . 0317192 . 0395381 _cons - . 54941 0181136 - 30. 33 0 . 000 . 5849142 . 5139058 sum dead_5 age flu_shot raedyrs num_hconditions if e(sample)==1> Variable Obs Mean Std. Dev. Min Max dead_5 19, 316 1511182 . 3581734 1 age 19 , 316 66 . 62026 11 . 43569 24 107 flu_shot 19 , 316 6180369 . 4858802 0 1 raedyrs 19 , 316 12 . 3099 3. 320493 num_hcondi~s 19 , 316 1. 544833 1 . 246858 0 where dead 5 = a dummy variable for taking value 1 if a person dies in the next 5 years age = age of person measured in years e) flu shot = a dummy variable that takes value 1 if a person had a flu shot raedyrs = years of education measured in years num hconditions = number of chronic health conditions, such as diabetes, high blood pressure, etc. UI\fe) Using p-value approach, test the following hypothesis with 0=5%: HO: Page 20 and HA: Page F 0 . 0000 Residual 2072 . 75846 19, 311 . 107335636 R-squared 0 . 1635 11 11 11 1 + - - Adj R-squared 0. 1633 Total | 2477 . 88585 19 , 315 . 128288162 Root MSE 32762 dead_5 | Coef. Std. Err. P> | t/ [958 Conf. Interval 0002249 48 . 21 0. 000 . 0104034 011285 . 0270269 -. 006772
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