Campaign expenditures affect election outcomes

The following model can be used to study whether campaign expenditures affect election outcomes:

voteA b0 1 b1log(expendA) 1 b2log(expendB) 1 bprtystrA u,

where voteA is the percentage of the vote received by Candidate A, expendA and expendB are campaign expenditures by Candidates A and b, and prtystrA is a measure of party strength for Candidate A (the percentage of the most recent presidential vote that went to A’s party).

(i)       What is the interpretation of b1?

(ii)      In terms of the parameters, state the null hypothesis that a 1% increase in A’s ex- penditures is offset by a 1% increase in b’s expenditures.

(iii)    Estimate the given model using the data in VOTE1.RAW and report the results in usual form. Do A’s expenditures affect the outcome? What about b’s expendi- tures? Can you use these results to test the hypothesis in part (ii)?

(iv)    Estimate a model that directly gives the statistic for testing the hypothesis in part (ii). What do you conclude? (Use a two-sided alternative.)

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 20% with the discount code RESEARCH