Econ Assignment #5

Econ Assignment #5 - Shivali Gupta Economics 10 Assignment...

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Shivali Gupta Economics 10 Assignment 5 Hansford Section 004 1. 2.
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0 50000 100000 150000 0 1000000 2000000 3000000 4000000 challenge spending in 1994 dollars $$$ given the incumbent by his/her party Fitted values Commands: regress partymoney chspend twoway (scatter partymoney chspend) (lfit partymoney chspend) a.) The coefficient estimate for the amount of money spent on the campaign by the candidate challenging the incumbent (chspend) is .0462434. The coefficient estimate means that for every dollar spent the amount of campaign contributions that an incumbent member of the House of Representatives receives from his or her political party increases by $.0462434. Yes, I can reject the null hypothesis that this coefficient is zero, because the p-value is significantly smaller than the pre-set alpha level of 0.05. This coefficient estimate represents that the amount of money spent on the campaign by the candidate challenging the incumbent has an impact on the amount of campaign contributions that an incumbent member of the House of Representatives receives from his or her political party. b.) The value of the R-squared is 0.4068 for this model. The R-squared value of 0.4068 represents that about 41% of variations in partymoney is explained by chspend. c.) The observation that fits the model least well, or in other words the outlier that is most noticeable, is the variable for Acevedo where the candidate challenging the incumbent spent $368251.97 but only received $15615.29 from his/her party.
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This note was uploaded on 07/02/2010 for the course ECON 10 taught by Professor Thomas during the Spring '10 term at UCM.

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Econ Assignment #5 - Shivali Gupta Economics 10 Assignment...

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