Let us change the unit of measurement of one of the independent variables, cigs. Define packs to be the number
of packs of cigarettes smoked per day, that is, packs = cigs/20. We can obtain the estimated model:
申論題內容
11. Instead of replacing cigs with packs, we add packs to the equation. What is the effect on the coefficients
on cigs and packs if we include both cigs and packs in the same equation? Explain.