parts d, e and f please. Question 2You are interested in whether smoking potentially influences birth weight of babies.Suppose you estimate the following regression model 1:bweight; = a, + a, cigs; + azfaminc; + €;(1)where "bweight represents a child's weight at birth (in ounces), "cigs" is the numberof cigarettes smoked per day by the mother while she was pregnant, and "faminc" isthe total family income (in thousands of US dollars).a) Provide an intuition of the model above. How would you justify the selection ofvariables? Would you expect the estimated coefficients to be positive/negative, andwhy?b) The correlation between the two independent variables is -0.173. Provide anintuition about this statistics.c) The output of your regression is displayed in Table 3. Interpret the estimatedcoefficients, discuss their significance level and goodness of fit in the regression.Table 3: output of regression model 1reg bwght cigs faminedfNumber of obs1,38821.27SourceMSF (2, 1385)0.00000.02980.0284Model17126.20888563.10442Prob FResidual557485.5111,385 402.516614R-squaredAdj R-squaredTotal574611.721, 387414.28386420.063Root MSEbwghtCoef.Std. Err.P|t|[958 Conf. Interval]cigsfamine0.0000.002-.4634075.0915768-5.06-.6430518-.2837633.1500219.0927647116.9741.0355075114.9164.02918793.18cons1.048984111.510.000119.0319d) Variable "cigs" contains 122 non-zero values (representing the number ofcigarettes a mother smokes) and 1266 zero values. You decided that you want totest a hypothesis that the average birthweight of children born to smoking mothersis lower compared to the average birthweight of non-smoking mothers. Explain,how you would carry out such a test. e) Do you think an important variable(s) which could cause bias in the estimatedcoefficient for cigs is left out of a regression? Explain the mechanism of omittedvariable bias (i.e., when does an omitted variable cause bias and when does itnot)?f) Table 4 presents another regression output with a slight adjustment. Identify whatwe did and explain the reason why we would do so. Which regression output(presented in Table 3 or Table 4) would you use if you were writing a report?Table 4: output of regression model 2• reg bwght cigs faminc, rinear regressionNumber of1,388F(2, 1385)22.11Prob F0.0000R-squared0.0298Root MSE20.063RobustbwghtCoef.Std. Err.P|t|(958 Conf. Interval]cigsfamine-.4634075.09276470.0000.001-.637525.0366875.0887594-5.22-.2892901.02858643.25.148842cons116.97411.037207112.780.000114.9395119.0088

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parts d, e and f please. Question 2You are interested in whether smoking potentially influences birth weight of babies.Suppose you estimate the following regression model 1:bweight; = a, + a, cigs; + azfaminc; + €;(1)where &#34;bweight represents a child's weight at birth (in ounces), &#34;cigs&#34; is the numberof cigarettes smoked per day by the mother while she was pregnant, and &#34;faminc&#34; isthe total family income (in thousands of US dollars).a) Provide an intuition of the model above. How would you justify the selection ofvariables? Would you expect the estimated coefficients to be positive/negative, andwhy?b) The correlation between the two independent variables is -0.173. Provide anintuition about this statistics.c) The output of your regression is displayed in Table 3. Interpret the estimatedcoefficients, discuss their significance level and goodness of fit in the regression.Table 3: output of regression model 1reg bwght cigs faminedfNumber of obs1,38821.27SourceMSF (2, 1385)0.00000.02980.0284Model17126.20888563.10442Prob > FResidual557485.5111,385 402.516614R-squaredAdj R-squaredTotal574611.721, 387414.28386420.063Root MSEbwghtCoef.Std. Err.P>|t|[958 Conf. Interval]cigsfamine0.0000.002-.4634075.0915768-5.06-.6430518-.2837633.1500219.0927647116.9741.0355075114.9164.02918793.18cons1.048984111.510.000119.0319d) Variable &#34;cigs&#34; contains 122 non-zero values (representing the number ofcigarettes a mother smokes) and 1266 zero values. You decided that you want totest a hypothesis that the average birthweight of children born to smoking mothersis lower compared to the average birthweight of non-smoking mothers. Explain,how you would carry out such a test. e) Do you think an important variable(s) which could cause bias in the estimatedcoefficient for cigs is left out of a regression? Explain the mechanism of omittedvariable bias (i.e., when does an omitted variable cause bias and when does itnot)?f) Table 4 presents another regression output with a slight adjustment. Identify whatwe did and explain the reason why we would do so. Which regression output(presented in Table 3 or Table 4) would you use if you were writing a report?Table 4: output of regression model 2• reg bwght cigs faminc, rinear regressionNumber of1,388F(2, 1385)22.11Prob > F0.0000R-squared0.0298Root MSE20.063RobustbwghtCoef.Std. Err.P>|t|(958 Conf. Interval]cigsfamine-.4634075.09276470.0000.001-.637525.0366875.0887594-5.22-.2892901.02858643.25.148842cons116.97411.037207112.780.000114.9395119.0088

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