Concept explainers
Predicting presidential elections. Researchers at the University of West Florida used
Duration of incumbent party: X2t = number of consecutive terms served prior to election year t
Party of incumbent in election year t X3t = {1 if Democrat, 0 if Republican}
GDP trend in election year t X4t =number of quarters of the previous administration where the GDP > 3.2%
GDP growth rate: X5t =growth rate of the GDP in the first three quarters of election year t
a. Write a first-order regression model for E (Yt) as a
b. The model, part a, was fit to data collected for n = 24 election years (from 1916 to 2008). The coefficient of determination was reported as R2 = .91. Interpret this result, practically.
c. Use the value of R2 to compute the F-statistic for testing the global adequacy of the model. Carry out the test using a = .05.
d. The estimated β for X1t was reported as −4.08 (p-value < .05). Interpret this result. practically.
e. The estimated β for X2t was reported as −3.41 (p-value < .05). Interpret this result, practically.
f. The estimated β for X3t was reported as −4.84 (p-value < .05). Interpret this result, practically.
g. The estimated β for X4t was reported as .92 (p-value < .05). Interpret this result, practically.
h. The estimated β for X5t was reported as .66. Interpret this result, practically.
i. The standard deviation of the model was reported as s = 2.36. Interpret this result, practically.
j. Do you recommend that the researchers use the model to predict the outcome of a future presidential election? Explain.
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