Use the following information to answer question. What determines the voting behavior in a presidential election? An economist believes that people “vote their pockets.” He argues that economic condition is the greatest concern of voters. Therefore, the percentage of votes the incumbent gets depends on macroeconomic variables such as the inflation rate (IR), the unemployment rate (UR), and the growth rate of disposable income (DI). The following table contains these data:

In the regression, we are interested in what percentage of votes the incumbent receives. We decide to use the following model:

Apolitical scientist wants to add an important variable to the equation associated with question 64 to catch the effect of war on voting behavior. He argues that as a result of patriotism, the incumbent receives a higher percentage of votes during a war than during peacetime. Suggest a way to specify the new model in order to catch the patriotism effect.

Question 64

Which of the following models is nonlinear in parameters where y and x are variables and

a, b, and c are parameters?

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V 45 48 49.5 48.8 50.4 51.3 52.4 47.6 54.1 50.0 DI 1.2 1.8 2.0 1.9 2.2 2.4 2.7 1.9 3.0 2.3 UR 8.3 7.4 7.1 6.5 6.2 5.9 5.7 7.0 5.1 6.1 IR 3.5 3.8 3.9 4.2 4.6 4.9 5.0 3.4 5.1 3.4