1.) Using regression (5), explain in words what the coefficient on the interacti
ID: 3337131 • Letter: 1
Question
1.) Using regression (5), explain in words what the coefficient on the interaction term higdpcc * lackpf means.
2.) One theory is that ethnic and religious diversity leads to strife and terrorism when economic resources are poor (i.e. GDP per capita is below the median), but if overall economic conditions are strong (GDP per capita above the median) then ethnic and religious diversity are more readily tolerated and do not lead to terrorism. Does the regression in column (6) support or refute this theory? Explain.
Dependent variable: lnftm lnftmooRInttmeo ftmp InftmpoR InftmpoR Regressor -0.279 )| (-0.204 0.057 0.215 0.034 0.081 1.651 0.539 0.194 0.062 0.047 0.245) (Coefficient) lnadppC0.312 Robust Standard Error | L 0.150 (Coefficient) (lngdppc) Robust Standard Error 1.466 0.036 0.143 -0.278 1.466 0.546 )|(-0.158 ) 0.545 0.173 0.062 0.569 ( 0.998 )1.124 (Coefficient) lackpf Robust Standard Error (Coefficient) lackpf Robust Standard Error 0.170 0.062 (Coefficient) biadppc Robust Standard Error 3.173 (Coefficient)higdgpc x lackpf Robust Standard Error (Coefficient)Ethnic Robust Standard error (Coefficient) Religion Robust Standard Error 0.682 0.258 ) 0.656 0.958) 1.243 1.024 2.579 1.346 1.069 1.755 ) 0.970) (Coefficient) bigdppc x ethnic Robust Standard Error (Coefficient) bigdppc x religion Robust Standard Error (= 1.946 ) 3.999 (Coefficient) Intercept Robust Standard Error 2.048 0.213 4.431 1.077 )|-1.292 -0.473 0.823 2.201 )!( )|-1.324 F-statistics testing the hypothesis that the population coefficients on the indicated regressors are all zero: (F-test) lnadops, Ingdpp 0.900 4.950 0.010 P-Value (F-test) lackef, lackp P-Value 0.027) 2.20 (F-test) ethnic, religion P-Value 0.371) higdppc x ethnic, higdppc.x rengion 0.800 0.454 Regression summary statistics 0.037 0.063 0.049 0.062 0.123 0.170 119 0.179 0.103 0.139 0 113 0.198 Adjusted RExplanation / Answer
1) Using regression (5), the coefficient on the interaction term higdpcc * lackpf means. that the combined effect of higdppc and lackpf is affecting the model lfntmpop and has a robust regression error of 0.258 or 25.8%
2) the regression in column 6 supports this theory as the interaction effect of GDP per capita and religion and ethnicity has a lesser robust regression error as per the change in GDP per capita thus the model supports this theory.
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