Part 3 Long Questions (38 points in total) Note: for each sub-question, the answer should not be longer than 10 lines. (20 points) 3.1 The following model can be used to study whether campaign expenditures affect election outcomes: voteA = Bo + BilexpendA + BlexpendB + u (1) voteA = fo + BilexpendA + BylexpendB + BaprtystrA + u (2) where voteA is the percentage of the vote received by Candidate A, lexpendA and lexpendB are logarithm of the campaign expenditures by Candidates A and B, and prtystrA is a measure of party strength for Candidate A (the percentage of the most recent presidential vote that went to A's party). We run the above regressions and then construct a test. The outcome is as following. > reg summ(reg, robust="HC1", digits=3) MODEL INFO: observations : 173 Dependent Variable: voteA Type: OLS linear regression MODEL FIT: F(2,170) = 356. 205, p = 0. 000 R= = 0. 807 Adj. R= = 0. 805 Standard errors: Robust, type = HC1 Est. 5. E. t val. P (Intercept) 42. 818 5. 829 7. 346 0. 000 1expendA 13. 585 0. 730 18. 600 0. 000 1expends -12. 591 0. 584 -21. 552 0. 000