The following model can be used to study whether campaign expenditures affect election outcomes:
voteA 5 b0 1 b1log(expendA) 1 b2log(expendB) 1 b3 prtystrA 1 u,
where voteA is the percentage of the vote received by Candidate A, expendA and expendB
are campaign expenditures by Candidates A and B, and prtystrA is a measure of party
strength for Candidate A (the percentage of the most recent presidential vote that went
to A’s party).
(i) What is the interpretation of b1?
(ii) 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.
(iii) Estimate the given model using the data in VOTE1.RAW and report the results
in usual form. Do A’s expenditures affect the outcome? What about B’s expenditures?
Can you use these results to test the hypothesis in part (ii)?
(iv) 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.)

James albemarle created a trust fund at the beginning of 2016. the income from this fund will go to his son edward. when edward reaches the age of 25, the principal of the fund will be conveyed to united charities of cleveland. mr. albemarle specified that 75 percent of trustee fees are to be paid from principal. terry jones, cpa, is the trustee. james albemarle transferred cash of $500,000, stocks worth $400,000, and rental property valued at $250,000 to the trustee of this fund. immediately invested cash of $360,000 in bonds issued by the u.s. government. commissions of $7,900 are paid on this transaction. incurred permanent repairs of $9,000 so that the property can be rented. payment is made immediately. received dividends of $8,000. of this amount, $3,000 had been declared prior to the creation of the trust fund. paid insurance expense of $4,000 on the rental property. received rental income of $10,000. paid $8,000 from the trust for trustee services rendered. conveyed cash of $7,000 to edward albemarle.