Predicting assassination risk. New Scientist (April 3, 1993) published an article on strategies for foil- ing assassination attempts on politicians. The strategies are based on the ?ndings of researchers at Middlesex University (United Kingdom), who used a multiple regression model for predicting the level y of assassination risk. One of the variables used in the model was political status of a country (communist, democratic, or dictatorship).
(a) Propose a model for E(y) as a function of political status.
(b) Interpret the β's in the model, part a.