\begin{Schunk}
\begin{Sinput}
 dat$fWEST <- factor(dat$WEST, labels=c("East","West")) 
 pemod4 <- lm(EX ~ fWEST, data=dat)
 termplot(pemod4, terms=c("fWEST"), partial.resid=T, xlab="Region (categorical)",ylab="Public Expenditures (Per Capita, 1960)")
\end{Sinput}
\end{Schunk}
