b3 The 2005 state by state crime rate per 100000 increases b

(b-3) The 2005 state by state crime rate per 100,000 increases by .0124 for each dollar increase in federal funding per person O decreases by .0124 for each dollar increase in federal funding per person increases by .05 for each dollar increase in federal funding per person decreases by .025 for each dollar increase in federal funding per person (b-4) The 2005 state by state crime rate per 100,000 O increases by about 19 for each 1% increase in high school graduations. O increases by about 29 for each 1% increase in high school graduations. O decreases by about 29 for each 1% increase in high school graduations O decreases by about 19 for each 1% increase in high school graduations (c) ould the intercept seem to have meaning in this regression? O No O Yes (d) Make a prediction for Burglary when X 35 years, X2 7.0 bankruptcies per 1,000, X. $6,000, and X4 80 percent. (Enter your answer in thousands. Round your answer to 4 decimal places.) Sales thousands

Solution

b-3.

As the coefficient is NEGATIVE, -0.0124, then

OPTION B: DECREASES BY 0.0124 FOR EACH DOLLAR INCREASES IN FEDERAL FUNDING PER PERSON.

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b-4.

As the coefficient is NEGATIVE, -29 approximately, then

OPTION C: DECREASES BY ABOUT 29 FOR EACH 1$ INCREASE IN HIGH SCHOOL GRADUATIONS.

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b-4.

YES. The intercept takes care of the amount of crime unrelated to the variables we have.

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If

X1 = 35
X2 = 7
X3 = 6000
X4 = 80

Plugging these in into our linear regression,

y^ = 966.7039 [ANSWER, PART D]