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STATA exercise: Download the STATA dataset InfantMortalityAirPollution2016.dta from Courseworks and open it in Stata. Remember that this dataset was used in a study on environmental

STATA exercise: Download the STATA dataset "InfantMortalityAirPollution2016.dta" from Courseworks and open it in Stata. Remember that this dataset was used in a study on environmental regulations in India. We will work with the variables c IM, which records the infant mortality rate (in 1000 births) in a given city in a given year; catconverter, which takes the value 1 if a city in a given year has mandates for catalytic converters and 0 if a city in a given year does not have such mandates; eventuallyadoptCAT, which takes the value 1 if a city has eventually adopted mandates for catalytic converters and 0 otherwise; and year, which gives the year of record for the information about infant mortality and environmental regulation. (a) (6 points) Run a regression of infant mortality on catconverter and eventuallyadoptCAT. Show STATA command and its output. Interpret the coefficients of your STATA output. (b) (6 points) An Indian politician claims that the average infant mortality rate drops every year by 1 in 1000 births. Run an uni-variate regression in STATA to test his claim. Show the STATA command and its output. Use the STATA output to test the politician's claim using a 1% significance level. (c) (8 points) Suppose the politician qualifies his claim: the average infant mortality rate drops by 1 in 1000 births only in cities that do not have mandates for catalytic converters. Run the appropriate multivariate regression in STATA with interaction terms to test his claim. Write down the prediction equation for your regression. Show the STATA command and its output. Use the STATA output to test the politician's claim using a 1% significance level.

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