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of the child at birth) is affected by maternal smaking during pregnancy, which is measured by the number af cigarettes the pregnant mother smaked during the pregnancy (CigPerDay) We suspect that this varlable CigPerDay may be correlated with the regression error leading to an endogeneity problem requiring an instrumental variable technique. You can assume the other explanatory varlables are uncorrelated with the error. These variables are: Order: which is the order of birth Male: Dummy variable taking 1 if child's sex is male, The potential instrumental varlables, which might affect maternal smoking behavior but have no direct influence on birth weight, are years of maternal schooling (MotherEducation), years of paternal schooling (FatherEducation) and family income (Familyincome), measured in thousands of u5 dollars). Undertake the following steps to look. at the potential Instrumental Variable problem: a) Run an OLS regression of LogBW an an intercept, CigferDay, Order and Male. Assuming (possibly incorrectly) that CgPerDay is uncorrelated with the error. Interpret the results of this OLS regression. Does maternal smaking have a negative impact on birth weight? b) Use MotherEducation as an instrumental variable in the regression of LagBW an an intercept, CigferDay, Order and Male. Interpret the results of this regression. Does maternal smaking have a negative impact on birth weight? c) Obtain the Hauman test statistic based on the last step. Does it suggest you should use the CLS results from part a or the IV results from part b? d) Use MotherEducation, FatherEducation and Familyincome all three instrumental variables in the regression of LogBW on an intercept, CigPerDay, Order and Male. Interpret the results of this regression. Does matemal smaking have a negative impact on birth weight? e) Obtain the Hausman test statistic based on exerolse d. Does it suggest you should use the CLS or the IV estimator? f) Obtain the Sargan test statiatic based an exercise d. Does it suggest that the instrumental variables are vald ones