In: Statistics and Probability
The U.S. Department of Agriculture defines a food desert as a census tract in which a sizable percentage of the tract's population resides a long distance from the nearest supermarket or large grocery store. Below are fabricated data for ten census tracts. The independent variable is percent low-income residents, the dependent variable is the distance (in miles) between each tract and the nearest grocery store. The hypothesis: In a comparison of census tracts, those with higher percentages of low-income residents will be farther from the nearest grocery store than will tracts having lower percentages low-income residents.
Census Tract Percent-Low Income (x) Distance in Miles (y)
Tract 1 0 .2
Tract 2 0 .4
Tract 3 10 .5
Tract 4 10 .7
Tract 5 20 .8
Tract 6 20 1.0
Tract 7 30 1.1
Tract 8 30 1.3
Tract 9 40 1.4
Tract 10 40 1.6
(A.) What is the regression equation for this relationship? Interpret the regression coefficient. What exactly, is the effect of x on y? (Hint: The table gives information on the independent variable in ten-unit changes: 0 percent, 10 percent, 20 percent, and so on. Remember that a regression coefficient estimates change in the dependent variable for each one-unit change in the independent variable.)
(B.) Interpret the y-intercept. What does the intercept tell you exactly?
(C.) Based on this equation, what is the predicted value of y for census tracts that are 15 percent low-income? Census blocks that are 25 percent low-income?
Answer :- The U.S. Department Agriculture define a food desert as a census tract in which a sizable percentage of the tract's population resides a long distance from the nearest supermarket or large grocery store.
1) The independent variable in 10℅ changes as ( 0℅, 10℅ ans 20℅ )
i) The regression coefficient estimate change in the dependent variable for each one-unit.
y = 0.3 + 0.03x
ii) The interpretation is,
2) The y- intercept is interpreted as,
3) Given that,
X = 15
'X' value is using in regression equation ,
y = 0.3 + 0.03X
= 0.3 + 0.03(15)
= 0.3 + 0.45
y = 0.75
Given X = 25
'X' value is using in regression equation,
y = 0.3 + 0.03(25)
= 0.3 + 0.75
y = 1.05
4) Given adjusted R2= 0.94
This means that 94℅ of the variability of the dependent variable 'y' has been explained by our model.