You obtain voting data by U.S. state and want to examine the likelihood that a s

Question

You obtain voting data by U.S. state and want to examine the likelihood that a state voted democratic or republican based on income, education level, the urban/rural breakdown of the population, and the region of the country.

A. If we ran a linear probability model (LPM) of vote on income, school, and urban, why might we want to include region dummies as well? How would that change our interpretation of these variables?

B. Run the LPM as stated in part A, including region dummy variables. How do we interpret income, school, and urban in this regression?

C. Are the region dummies you included jointly statistically significant? Is this the outcome we would expect? Explain why or why not.

Explanation / Answer

Since the p-value [Prob >F]=0 <0.05.so at 5% level of signficance we can conclude that the region dummies are  jointly statistically significant.

No, this outcome is not what we are expecting since the marginal effect of all the region dummies are not significant since p-values are > 0.05

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