Question

Predict and forecast what will happen in years to come using the regression method. This method will help prove if crime rates have gone up or down given the correlation to education and gdp growth. We are trying to prove if crime has gone down as it relates to education and gdp growth. Test against levels of Education & GDP growth rates. Please provide the regression equation as it pertains to the data below.

See Data Table Below:

Year	Population in Detroit	Reported Crimes Incidents in Detroit (Per 100,000)	Enrollment in Wayne State	Real GDP Per Capital $
2018	672662	838.2	27,053	53139
2017	674188	851.9	27,089	52879
2016	676883	868	27,298	51578
2015	679305	759	27,222	50793
2014	682669	868.8	27,578	49594
Year	Population in Grand Rapids	Reported Crimes Incidents in Grand Rapids (Per 100,000)	Enrollment in Grand Valley	Real GDP Per Capital $
2018	200217	285.6	25,460	50102
2017	199082	315.6	25,049	49791
2016	196546	310.8	25,094	48694
2015	195073	330.9	24,477	48572
2014	194352	326.9	24,654	46905

Answer 1

The regression equation is:

y = -5,152.0057 + 0.2048*x1 + 0.0076*x2

The hypothesis being tested is:

H0: β1 = β2 = 0

H1: At least one βi ≠ 0

The p-value is 0.0001.

Since the p-value (0.0001) is less than the significance level (0.05), we can reject the null hypothesis.

Therefore, we can conclude that the model is significant.

	R²	0.923
	Adjusted R²	0.902
	R	0.961
	Std. Error	87.093
	n	10
	k	2
	Dep. Var.	Reported Crimes Incidents in Detroit (Per 100,000)
ANOVA table
Source	SS	df	MS	F	p-value
Regression	6,40,852.9563	2	3,20,426.4781	42.24	.0001
Residual	53,095.8647	7	7,585.1235
Total	6,93,948.8210	9
Regression output				confidence interval
variables	coefficients	std. error	t (df=7)	p-value	95% lower	95% upper
Intercept	-5,152.0057
Enrollment in Wayne State	0.2048	0.0347	5.905	.0006	0.1228	0.2869
Real GDP Per Capital $	0.0076	0.0221	0.343	.7416	-0.0448	0.0600