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please do only E and F parts in 50 minutes please urgently.. I'll give you up thumb definitely Michael obtains data from a random sample

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please do only E and F parts in 50 minutes please urgently.. I'll give you up thumb definitely

Michael obtains data from a random sample of the population and estimates the following regression using ordinary least squares. Log Y = a + b*BMI + c*male + d*education + f*age + g*age + v Where Y are the individual's earnings, BMI is the individual's body mass index, male is a dummy variable taking a value of 1 if the individual is male and 0 otherwise, education are years of education, age is the individual's age, age is age- squared and v is an error term. He obtains the following coefficients and standard errors. Coefficient Standard error 6.56 1.01 -0.15 0.044 0.11 0.04 0.10 0.02 0.01 0.004 -0.02 0.01 c. Interpret the OLS coefficient of the effect of increasing an individual's body mass index by 1 unit on earnings. Is it statistically significantly different from 0? Note that the critical value for a two-sided t-test with 5% level of significance is 1.96. (6 marks) d. Michael realises that his data includes information on the body mass index (BMI) of individuals' siblings with the same gender (i.e. for male individuals, the data contains information on the BMI for his male siblings). Could he use this information to obtain the true effect of BMI on earnings? Explain your answer. (10 marks) e. A sub-set of individuals in Michael's data have been randomly selected to receive vouchers to attend a weight loss program. Data on their obesity status and earnings is collected after the end of the program. Discuss, clearly outlining any assumptions, how chael can use this to obtain the causal effect of BMI on earnings (10 marks) f. Explain one channel through which obesity imposes costs on society. (8 marks) ADC49 b d g

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