1. Using Model 3, test the hypothesis that the coefficient on lackpfhigh is zero against the alternative that it is non-zero at the 5% significance level. Explain why the result of this hypothesis test differs from that in question 11.

1. Using Model 3, calculate the predicted number of terrorist attacks for a country with the following characteristics:

Population: 600 million

Limited political freedoms

Ethnic heterogeneity: .8

Religious heterogeneity: .7

GDP per capita (in thousands of dollars): 4

Region: Asia

m(formula = DV ~ IV + gdppc + ethnic + religion + mideast, data = terrorism) tesiduals: Min 10 Median 30 Max 0. 6906 -0.2781 -0.0911 -0.0060 3.4836 Coefficients: Estimate Std. Error t value Pr(>Itl) "Intercept) 0.0758903 0.1623722 0. 467 0. 6409 V 0. 2150130 0.1189963 1. 807 0.0729 dppc -0. 0009779 0. 0952788 -0.185 0.8533 thnic 0. 1839491 0. 2220878 0. 828 0. 4089 eligion -0.1735284 0.2231728 -0. 778 0.4381 mideast 0. 3138214 0.2313647 1. 356 0.1771 ignif. codes: 0 ' * *' 0. 001 (*' 0.01 ' 0.95 '.' 0.1 . ' 1 tesidual standard error: 0.6909 on 144 degrees of freedom (34 observations deleted due to missingness) Multiple R-squared: 0.07662, Adjusted R-squared: 0.04456 -statistic: 2.39 on 5 and 144 DF, p-value: 0.04074