Question 11 William used a sample of 68 large US cities to e

Question 11

William used a sample of 68 large U.S. cities to estimate the relationship betweenCrime (annual property crimes per 100,000 persons) and Income (median annual income per capita, in dollars). His estimated regression equation was Crime = 428 + 0.050 Income. We can conclude that:

A) the intercept is irrelevant since zero median income is impossible in a large city.

B) the slope is small so Income has no effect on Crime.

C) wealthy individuals tend to commit more crimes, on average.

D) crime seems to create additional income in a city.

Solution

Answer: C) wealthy individuals tend to commit more crimes, on average.

As the slope is positive, higher the income, higher is the crime rate.