Question

Suppose the coefficient on the unemployment rate is 4.132. The coefficient on Republican Vote Share is...

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

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Answer #1

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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