to answer the following questions.
a.In Empirical Exercise 7.1(f), you estimated several regressions and were
asked: “What is a reasonable 95% confidence interval for the effect of
smoking on birth weight?â€
i. In Chapter 8, you learned about nonlinear regressions. Can you
think of any nonlinear regressions that can potentially improve your
answer to Empirical Exercise 7.1(f)? After estimating these additional
regressions, what is a reasonable 95% confidence interval for
the effect of smoking on birth weight?
ii. Discuss the internal validity of the regressions you used to construct
the confidence interval. Include a discussion of possible omitted
variable bias, misspecification of the functional form of the regression,
errors in variables, sample selection, simultaneous causality, and
inconsistency of the OLS standard errors.
b.The data set Birthweight_Smokingincludes babies born in Pennsylvania
in 1989. Discuss the external validity of your analysis for (i) California in
1989, (ii) Illinois in 2019, and (iii) South Korea in 2019.
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