This exercise refers to the drunk driving panel data regression summarized below.Regression Analysis of the Effect of Drunk Driving Laws on Traffic DeathsDependent variable: traffic fatility rate (deaths per 10,000).RegressorBeer taxDrinking age 18Drinking age 19Drinking age 20Drinking ageMandatory jail orcommunity service?Average vehiclemiles per driverUnemployment rateReal income per capita(logarithm)YearsState Effects?Time effects?(1)0.41*(0.056)1982-88nono(2)(3) (4)-0.62** -0.76*** -0.42(0.39)(0.33) (0.38)0.023(0.078)-0.014(0.084)-0.023 -0.075(0.053) (0.064)0.034 -0.109***(0.058) (0.058)noyesyesnoyesClustered standard errors?yesyesF-Statistics and p-Values Testing Exclusion of Groups of VariablesTime effects=0(5)-0.76**(0.36)0.041 0.083(0.111) (0.115)0.006 0.015(0.005) (0.011)-0.068*(0.016)1.66*(0.66)1982-88 1982-88 1982-88 1982-88yesyesyesyesyesyes(6)-0.46(0.39)-0.004(0.022)0.043(0.101)0.007(0.005)-0.064*(0.011)1.56*(0.63)1982-88yesyesyes10.483.9210.144.92(0.002) (<0.001) (0.005) (<0.001)1.57(0.299)0.33(0.716)29.15(<0.001)0.986(7)-0.94*(0.32)0.043(0.106)-0.061(0.103)- 0.118(0.125)31.16(<0.001)0.9820.092(0.164)0.124(0.048)-0.098*(0.022)1.07(0.64)1982 & 1988onlyyesyesyes37.82(<0.001)0.41(0.797)25.77(<0.001)0.803Drinking age coefficients = 0Unemployment rate,income per capita = 0R²0.0910.8020.8890.892These regressions were estimated using panel data for 48 U.S. states. Regressions (1) through (6) use data for all years1982 to 1988, and regression (7) uses data from 1982 and 1988 only. Standard errors are given in parentheses under thecoefficients, and p-values are given in parentheses under the F-statistics. The individual coefficient is statistically significantat the ***10%, **5%, or *1% significance level.New Jersey has a population of 6.3 million people. Suppose that New Jersey increased the tax on a case of beer by $1 (in 1988 dollars). Use the results in column (4) to predict the number of lives that would be saved over the next year.The predicted number of lives that would be saved over the next year is(Round your response to two decimal places)

Here we are given the regression result where the dependent variable is "traffic fatality rate…

his exercise refers to the drunk driving panel data regression summarized below. Regression Analysis of the Effect of Drunk Driving Laws on Traffic Deaths Dependent variable: traffic fatility rate (deaths per 10,000). Regressor Beer tax Drinking age 18 Drinking age 19 Drinking age 20 Drinking age Mandatory jail or community service? Average vehicle miles per driver Unemployment rate Real income per capita (logarithm) Years State Effects? Time effects? (1) 0.41" (0.056) 1982-88 no no (2) (3) -0.62** -0.76*** (0.39) (0.33) no 1982-88 yes no yes yes Clustered standard errors? yes yes F-Statistics and p-Values Testing Exclusion of Groups of Variables (6) (4) (5) -0.42 -0.76** -0.46 (0.38) (0.36) (0.39) 0.023 -0.014 (0.078) (0.084) -0.023 -0.075 (0.053) (0.064) 0.034 -0.109*** (0.058) (0.058) 0.041 (0.111) 0.006 (0.005) -0.068* (0.016) 1.66* (0.66) 0.083 (0.115) 0.015 (0.011) yes yes yes -0.004 (0.022) 0.043 (0.101) 0.007 (0.005) -0.064" (0.011) 1.56 1.07 (0.63) (0.64) 1982-88 1982-88 1982-88 1982-88 1982 & 1988 only yes yes yes (7) -0.94" (0.32) yes yes yes 0.043 (0.106) -0.061 (0.103) -0.118 (0.125) 0.092 (0.164) 0.124 (0.048) -0.098 (0.022) yes yes yes

his exercise refers to the drunk driving panel data regression summarized below. Regression Analysis of the Effect of Drunk Driving Laws on Traffic Deaths Dependent variable: traffic fatility rate (deaths per 10,000). Regressor Beer tax Drinking age 18 Drinking age 19 Drinking age 20 Drinking age Mandatory jail or community service? Average vehicle miles per driver Unemployment rate Real income per capita (logarithm) Years State Effects? Time effects? (1) 0.41" (0.056) 1982-88 no no (2) (3) -0.62 -0.76* (0.39) (0.33) no 1982-88 yes no yes yes Clustered standard errors? yes yes F-Statistics and p-Values Testing Exclusion of Groups of Variables (6) (4) (5) -0.42 -0.76 -0.46 (0.38) (0.36) (0.39) 0.023 -0.014 (0.078) (0.084) -0.023 -0.075 (0.053) (0.064) 0.034 -0.109* (0.058) (0.058) 0.041 (0.111) 0.006 (0.005) -0.068* (0.016) 1.66* (0.66) 0.083 (0.115) 0.015 (0.011) yes yes yes -0.004 (0.022) 0.043 (0.101) 0.007 (0.005) -0.064" (0.011) 1.56 1.07 (0.63) (0.64) 1982-88 1982-88 1982-88 1982-88 1982 & 1988 only yes yes yes (7) -0.94" (0.32) yes yes yes 0.043 (0.106) -0.061 (0.103) -0.118 (0.125) 0.092 (0.164) 0.124 (0.048) -0.098 (0.022) yes yes yes

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter7: Production Economics

Section: Chapter Questions

Problem 1.3CE

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