Suppose the coefficient on the unemployment rate is 4.132. The coefficient on Republican Vote Share is −0.478 and the coefficient on the Interaction Term between the unemployment rate and Republican Vote Share is 2.498. What is the Marginal Effect for the Republican Vote Share when the unemployment rate is 0.05?
Group of answer choices
−0.478
−0.353
0.05
2.498
Coefficient of unemployment rate (Un)= 4.132
Coefficient of Republican vote share (RVS)= -0.478
Coefficient of interaction term between unemploument rate and Republican vote share (Un * RVS) = 2.498
Let X is the dependent variable.
=> X = 4.132 Un + (-0.478) RVS + 2.498 (Un * RVS)
For the marginal effect of RVS, differentiate X w.r.t. RVS.
=> (Δ X / Δ RVS) = -0.478 + 2.498Un
Put Un = 0.05
=> (Δ X / Δ RVS) = -0.478 + 2.498 (0.05)
=> (Δ X / Δ RVS) = -0.353
Answer: Option (B)
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