The file smoker.dta contains cross-sectional data on 1,196 individuals. For each individual, there is information on education, age. income, and the price of cigarettes in 1979. The dependent variable is the binary variable smoker. This study is about the drivers of smoking behavior.
1) First, consider the linear probability model, where the dependent variable is smoker and the independent variables are age, education, income and price of cigarettes.
2) Now, consider the probit regression model, where the dependent variable is smoker and the independent variables are age, education, income and price of cigarettes.
write introduction of 800 words( what is econometric, what are econometric model that talk about linear probability model and probit regression model, what are they – we why use them – advantages – compare them) include some studying papers about smokers that are related to the topic).
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