Question 6

This exercise refers to the drunk driving panel data regression, summarised in Table 10.1 on pages 31 and 32 of the Lecture 8 slides. Arizona has a population of 7.28 million people. The drinking age in Arizona is 21. Suppose that Arizona lowered its drinking age to 19. Using the results in the table, you consider predicting the change in the number of traffic fatalities in the next year. Choose the correct statement: 3. The number of fatalities would increase by 0.028 deaths per 10,000 and this prediction is not statistically significant at the 5% level according to column (4). D. The number of fatalities would decrease by 0.010 deaths per 10,000 and this prediction is not statistically significant at the 5% level according to column (5). C. The number of fatalities would increase by 0.004 deaths per 10,000 and this prediction is not statistically significant at the 5% level according to column (6). d. The number of fatalities would increase by 0.037 deaths per 10,000 and this prediction is not statistically significant at the 5% level according to column (7). O e. Columns (4) to (7) all predict that the number of fatalities would substantially decrease and the predictions are all statistically significant at the 5% level.700 income-earning individuals from a district were randomly selected and asked whether they were employed by the government (Gov = 1) or failed their entrance test (Gov = 0) data were also collected on their gender (Male = 1) if male and = 0 if female) and their years of schooling (Schooling, in years). The following table summarizes several estimated models. (Standard errors are in parentheses). Dependent Variable: Gov Linear Linear Probit Logit Probability Probit Logit Probability Probit (1) (2) (3) (4) (5) (6) (7) Schooling 0.272 0.551 0.035 0.548 (0.029) (0.062) (0.003) (0.091) Male -0.242 -0.455 -0.050 4.352 (0.125) (0.234) (0.025) (1.291) Male X Schooling -.344 (0.096) Constant -4.107 -8.146 -0.172 -1.027 -1.717 0.152 -7.702 (0.358) (0.800) (0.027) (0.098) (0.179) (0.021) (1.238)