U .3. political candidates spend a lot of time raising money, and then use it for their campaigns. But does the money actually help? That is, does campaign spending increase vote share? Consider the following model: Vote-Share, : on + .31 * Spending,- + ni, where VoteShore, is the share of votes received by candidate 1'- and Spending,- is how many dollars they spent on the campaign. Note that vote share is in % terms (10%. 25%), and spending is in ls dollars (ie. 1 means 1000, 2 means 2000', etc). a} W'hat are g and :31, and what do they usually represent j mean? b} Assume _:31 = 0.01. Till-"hat does that mean? Do you think that is a large eect or a small one? c} W'hat could be contained in error term? In other words, what other factors might affect elections? List a few of the factors that you think could he in the error term. d} 'What are the conditions for the independent variable X to be endogenous? e} ls X likely to be endogenous according to your opinion? Why or why not? Explain intuitively using examples