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Given the following model: i i i i bwght = + cig + faminc + 0 1 2 where bwghti: weight of infant i at

Given the following model: i i i i bwght = + cig + faminc + 0 1 2 where bwghti: weight of infant i at birth (grams); cigi: average number of cigarettes the mother of infant i was smoking per day during

pregnancy;

faminci: monthly income of the family of infant i (RM1000s). a. What are your expectations about the signs of 1 and 2 , respectively? Explain your answer. (5 points) b. The EViews data file health contains data for the variables. Estimate the model using OLS method. Present/display the EViews regression result. c. Interpret the estimated coefficient of faminc that you obtained in b d. Interpret the adjusted R-squared value obtained. e. Test whether your expectation about 1 is supported/not, based on the empirical results obtained.

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