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Standard Dev

The document discusses the effects of smoking and family income on birth weight, using a regression equation to quantify these relationships. A one-standard-deviation increase in smoking (about 6 cigarettes) is associated with a 2.78-ounce decrease in birth weight, while a similar increase in family income ($18,700) correlates with a 1.74-ounce increase in birth weight. The findings highlight the importance of reducing smoking during pregnancy and increasing family income to improve infant health outcomes.

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helennguyen242004
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2 views

Standard Dev

The document discusses the effects of smoking and family income on birth weight, using a regression equation to quantify these relationships. A one-standard-deviation increase in smoking (about 6 cigarettes) is associated with a 2.78-ounce decrease in birth weight, while a similar increase in family income ($18,700) correlates with a 1.74-ounce increase in birth weight. The findings highlight the importance of reducing smoking during pregnancy and increasing family income to improve infant health outcomes.

Uploaded by

helennguyen242004
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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1.

Understanding the Coefficients


The regression equation is:
bwght=β0+β1⋅cigs+β2⋅faminc+u
●​ The estimated coefficients are:
○​ cigs: -0.463
○​ faminc: 0.093
This means:
●​ For every 1-unit increase in cigs (one additional cigarette smoked per day), birth
weight decreases by 0.463 ounces, holding faminc constant.
●​ For every 1-unit increase in faminc ($1,000 increase in family income), birth weight
increases by 0.093 ounces, holding cigs constant.

2. Standard Deviations
To make the interpretation more meaningful, we use the standard deviations of the variables:
●​ Standard deviation of cigs: 5.97 (from the summary statistics).
●​ Standard deviation of faminc: 18.74 (from the summary statistics).
This allows us to interpret the effects in terms of one-standard-deviation changes, which are
more realistic and meaningful than 1-unit changes.

3. Effect of cigs on Birth Weight


●​ Coefficient of cigs: -0.463
●​ Standard deviation of cigs: 5.97
●​ Effect of a one-standard-deviation increase in cigs:
●​ Effect=Coefficient×Standard Deviation=−0.463×5.97≈−2.78 ounces
●​ Effect=Coefficient×Standard Deviation=−0.463×5.97≈−2.78 ounces
●​ Interpretation: A one-standard-deviation increase in cigs (about 6 cigarettes per day)
is associated with a 2.78-ounce reduction in birth weight, holding faminc constant.

4. Effect of faminc on Birth Weight


●​ Coefficient of faminc: 0.093
●​ Standard deviation of faminc: 18.74
●​ Effect of a one-standard-deviation increase in faminc:
●​ Effect=Coefficient×Standard Deviation=0.093×18.74≈1.74 ounces
●​ Effect=Coefficient×Standard Deviation=0.093×18.74≈1.74 ounces
●​ Interpretation: A one-standard-deviation increase in faminc (about $18,700 in annual
family income) is associated with a 1.74-ounce increase in birth weight, holding cigs
constant.
5. Why Use Standard Deviations?
●​ Using standard deviations helps us understand the practical significance of the
variables.
●​ A one-unit change in cigs (one additional cigarette per day) or faminc ($1,000
increase in income) might seem small, but a one-standard-deviation change reflects
a more realistic and meaningful variation in the data.

6. Holding Other Variables Constant


●​ The phrase "holding faminc constant" (for cigs) and "holding cigs constant" (for
faminc) means that we are isolating the effect of one variable while keeping the other
variable fixed.
●​ This is important because it allows us to measure the independent effect of each
variable on birth weight, without interference from the other variable.

7. Summary of Economic Meaning


●​ cigs: Smoking 6 more cigarettes per day (one standard deviation) is associated with
a 2.78-ounce reduction in birth weight, assuming family income remains unchanged.
●​ faminc: A $18,700 increase in family income (one standard deviation) is associated
with a 1.74-ounce increase in birth weight, assuming smoking behavior remains
unchanged.

8. Practical Implications
●​ Smoking (cigs): Smoking during pregnancy has a negative and significant effect on
birth weight. Reducing smoking could lead to healthier birth weights.
●​ Family Income (faminc): Higher family income has a positive and significant effect on
birth weight, likely due to better nutrition and prenatal care. Policies that increase
family income could improve infant health outcomes.

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