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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. Suppose that Arizona increased the tax on a case of beer by $2 (in 1988 dollars). Use the results in column (6) to predict the number of lives that would be saved over the next year (two decimal places).

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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. Suppose that Arizona increased the tax on a case of beer by $2 (in 1988 dollars). Use the results in column (6) to predict the number of lives that would be saved over the next year (two decimal places).

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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.Suppose you are interpreting the estimated coefficient on Real Income Per Capita (Income) as the causal effect on Traffic Fatality Rate. Choose the correct statement: a. According to column (3), the true model must not include Income in the analysis. b. According to column (4), when Income increases by $1, the number of fatalities would increase by 1.82 deaths per 10,000 but the prediction is not statistically significant. c. According to column (5), when Income increases by $1, the number of fatalities would increase by 0.09 deaths per 10,000 but the prediction is not statistically significant. d. According to column (6), when Income increases by 1 percent, the number of fatalities would increase by 0.0179 deaths per 10,000 and the prediction is statistically significant. e. According to column (7), when Income increases by 1 percent, the number of fatalities would increase by 0.01 deaths per 10,000 and the prediction is statistically significant.

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