(e) The logarithm of per capita income is labeled Log GDPPC . Regress Dem ind on Log-GDPPC using standard errors that are clustered by country. (5 marks for running regression using an econometric software) i. How large is the estimated coefficient on Log GDPPC? Is the coefficient statistically sig- nificent? (5 marks) ii. If per capita income in a country increases by 20%, by how much is Dem ind predicted to increase? What is a 95% confidence interval for the prediction? Is the predicted increase in Dem ind large or small? (Explain what you mean by large or small.) (10 marks) iii. Why is it important to use clustered standard errors for the regression? Do the results change if you do not use clustered standard errors? (10 marks)