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a) (2 points) Carefully interpret the coefficient on oil discovered in Regression 1. (b) (4 points) Calculate a 95% confidence interval for the coefficient on oil discovered in Regression 1. (c) (2 points) "British legal origin" is a categorical variable taking value 1 if the country's legal system is of British origin and 0 otherwise. Carefully interpret the coefficient on British legal origin in Regression 2.

d) (4 points) "Communist" is a categorical variable taking value 1 if the country is communist and 0 otherwise. Using Regression 3, test whether, everything else equal, being a communist country reduces the improvement in a country's political institutions. Use 1% significance level. (e) (4 points) Using Regression 3, write down the prediction of equation of the change in Polity IV index as a function of oil discoveries for a country which was not a democracy before the discovery. Assume the intercept of the regression (not reported in the table) is 0.93. Assume all other explanatory variables are zero. (f) (4 points) Using Regression 3, write down the prediction of equation of the change in Polity IV index as a function of oil discoveries for a country which was a democracy before the discovery. Assume the intercept of the regression is 0.93 and all other explanatory variables are zero. (g) (2 points) Draw the two prediction lines on the same graph with the amount of oil discovered in a country in the last decade on the horizontal axis. (h) (2 points) Some researchers claim that discoveries of oil reserves have a negative impact on a country's political institutions. What would be your conclusion in light of the regressions above?