# 1. What is the interpretation of β_1? # In terms of the parameters, # state the null hypothesis that a 1% increase in A’s expenditures # is offset by a 1% increase in B’s expenditures. # c) Estimate the given model using the data in VOTE1.gdt # and report the results in usual form. Do A’s expenditures affect the outcome? # What about B’s expenditures? ols voteA 0 lexpendA lexpendB prtystrA # d)Estimate a model that directly gives the t statistic # for testing the hypothesis in part (ii). # What do you conclude? (Use a two-sided alternative.) genr lexpendAB = lexpendA + lexpendB ols voteA 0 lexpendAB prtystrA