Problem
Consider the CigarettesB data taken from Baltagi (2002). Run a regression of real per capita consumption on real price and real per capita income (all variables in logarithms). Obtain the usual diagnostic statistics using influence.measures(). Which observations are influential? To which states do they correspond? Are the results intuitive?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.