In the t11e7 Excel file are data on the voting outcome, by state, in the 1976 U.S. presidential election. The outcome variable, DemRep, takes the value of 1 if the popular vote favoured the Democratic candidate (Jimmy Carter) or 0 if the vote favoured the Republican candidate (Gerry Ford). The other variables are Inc = Median income in the stat in 1975. School = Median number of years of school completed by persons 18 years of age or older in the state in 1975. Urban = Percentage of population living in an urban area of the state in 1975. Region = 1 for Northeast, 2 for Southeast, 3 for Midwest and Middle South, and 4 for West and Mountain regions. a) Region is a qualitative variable having four categories. Create 3 dummy variables with R, D2 for Southeast, D3 for Midwest and Middle South and D4 for West and Mountain regions. b) Estimate a linear probability model for the vote outcome (DemRep) using Inc, School, Urban and the D2, D3, D3 dummy variables as independent variables. Briefly evaluate and interpret the results with special regard to the overall significance of the regression, the quality of the predictions, the significance of the slope estimates and the meaning of the significant slope estimates. c) Use the general F-test to find out whether there is any regional effect. d) What is the estimated probability that the popular vote in the Northeast region would favour the Democratic candidate assuming that Inc, School, and Urban are all equal to their sample means?

A B C D E F State DemRep Inc School Urban Region Alabama 11785 12.2 61.8 N Alaska 22432 12.7 43.7 Arizona 13569 12.6 74.7 Arkansa 10106 12.2 384 California 15069 12.7 92.7 Colorado 0 14992 12.8 80.6 Connecticut 16244 12.6 88.2 Delaware 15732 12.5 68.5 0 DC 15002 126 100 1 Florida 12205 124 85.9 ANNKK 2 Georgia 12441 12.3 56.B 3 Hawaii 17770 12.7 80.5 4 Idaho 12844 12.6 16.9 5 Illinois 16032 12.5 81.3 6 Indiana O 14411 124 67.8 lowa 0 14464 12.5 374 8 Kansas O 13412 12.6 46.2 9 Kentucky 11019 12.1 45.1 0 Louisiana 12576 12.3 63.2 Maine 0 11839 12.5 23.3 2 Maryland 17556 126 84.8 3 Massachusetts 15531 126 86.1 4 Michigan 15385 12.5 813 5 Minnesota 14740 12.5 63.9 6 Mississippi 9999 12.1 26.6 7 Missouri 13011 124 63.5 B Montana 13608 12.6 24.4 9 Nebraska O 14209 12.6 44.6 0 Nevada O 14961 12.6 81.3 1 NewHampshire O 14258 12.6 36.6 2 NewJersey 16432 124 92.1 3 NewMexico O 11798 12.5 33.6 4 NewYork 15288 12.5 88.4 5 NorthCarolina 11834 12.2 45.2 6 NorthDakota 13626 12.5 22.7 7 Ohio 14822 124 79.8 B Oklahoma 12172 124 55.6 A 9 Oregon 13854 12.7 59.9 A 0 Pennsylvania 1 14153 124 80.4 1 RhodeIsland 14530 124 92.2 IN KI 2 SouthCarolina 12188 12.2 48.3 3 SouthDakota 0 12051 12.5 27.9 4 Tennesse 11341 12.2 63 5 Texas 12672 124 79.4 6 Utah 14329 12.8 78.7 Vermont O 12415 12.5 0 B Virginia 14579 124 65.6 19 Washington 14962 12.7 71.1 0 WestVirginia 12007 12.1 36.1 Wisconsin 15064 12.5 63 2 Wyoming 0 14784 12.6