Use the following information to answer question. What determines the voting behavior in a presidential election? An

Question:

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:image text in transcribed

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

Use an F test to test the hypothesis that b2 = b3 = 0 at the 5 % level.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Statistics For Business And Financial Economics

ISBN: 9781461458975

3rd Edition

Authors: Cheng Few Lee , John C Lee , Alice C Lee

Question Posted: