Question
Please refer to the link on the comment section for gretl data sets: state smoking data 1.Non-linear functional forms: a)Estimate a quadratic regression model where
Please refer to the link on the comment section for gretl data sets: state smoking data
1.Non-linear functional forms:
a)Estimate a quadratic regression model where the outcome of interest is cigarette consumptionand the predictor variable is the price of a pack ofcigarettes.
b)Estimate the effect of an increase in the price of a pack of cigarettes from $4 to$5.
c)Provide a scatterplot that includes the estimated regression equation for the quadraticmodel.
d)Estimate a linear-log regression model where the outcome of interest is cigarette consumptionand the predictor is the price of a pack ofcigarettes.
e)Estimate the effect of an increase in the price of a pack of cigarettes from $4 to$5.
f)Provide a scatterplot that includes the estimated regression equation for the linear-logmodel.
g)Which model provides a better fit to the data? The quadratic or linear-log model? Which modeldo you think is more appropriate from a theoreticalperspective?
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