Onallquestionsmakesuretoexplainyouranswerscompletely,usinggraphswheneverappropriate Imagine you are interested in the relationship between marijuana use during pregnancy and birth weight Birth weight is measured in grams and marijuana status during pregnancy (MJ) is denoted with anindicator variable (1 Yes and 0 No) You have data on maternal age and education (each measured inyears)andestimatethefollowingregressionmodel Birthweighti 1MJi 2Agei 3Educationi andobtainparameterestimates 3500,1 700,and2 15and3 25 Whatisthe interpretationoftheparameterestimate1 Uponpresentingyourfindingsataneconomicsconference,awell respected researcherarguesthatyour estimate of 1might overstate the negative effect of marijuana use on birthweight Explain how thefailure to account for other determinants of birth weight could lead you to overstate the negative impact ofmarijuanauseonbirthweight ConsidertwoalternativemedicaltreatmentsforPectrodits Treatment1 Cost $4,000 Benefit Reduces1 yearmortalityby8percentagepoints Treatment2 Cost $8,000 Benefit Reduces1 yearmortalityby10percentagepoints Calculatethe costofayearoflifesavedassociatedwitheachtechnology Assume treatment 1 was currently being used, and treatment 2 is a new technology Assess the cost effectivenessof switchingfromtreatment1totreatment 2 Reflect on the the cost effectiveness of treatment 2 in parts (a b) Which approach to assessing the cost effectivenessof thisnewtreatmentseemsmorerelevant

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Posted on Jul 06, 2024

Onallquestionsmakesuretoexplainyouranswerscompletely,usinggraphswheneverappropriate.

Imagine you are interested in the relationship between marijuana use during pregnancy and birth-weight.Birth-weight is measured in grams and marijuana status during pregnancy (MJ) is denoted with anindicator variable (1=Yes and 0=No).You have data on maternal age and education (each measured inyears)andestimatethefollowingregressionmodel

Birthweighti=+1MJi+2Agei+3Educationi

andobtainparameterestimates: =3500,1= -700,and2= -15and3=25

Whatisthe interpretationoftheparameterestimate1?
Uponpresentingyourfindingsataneconomicsconference,awell-respected researcherarguesthatyour estimate of 1might overstate the negative effect of marijuana use on birthweight.Explain how thefailure to account for other determinants of birth-weight could lead you to overstate the negative impact ofmarijuanauseonbirthweight.

Treatment1:	Cost:$4,000	Benefit:Reduces1-yearmortalityby8percentagepoints
Treatment2:	Cost:$8,000	Benefit:Reduces1-yearmortalityby10percentagepoints

Calculatethe costofayearoflifesavedassociatedwitheachtechnology.
Assume treatment 1 was currently being used, and treatment 2 is a new technology.Assess the cost-effectivenessof switchingfromtreatment1totreatment 2.
Reflect on the the cost-effectiveness of treatment 2 in parts (a-b).Which approach to assessing the cost-effectivenessof thisnewtreatmentseemsmorerelevant?