Question

In: Statistics and Probability

A regression model to predict Y, the state-by-state 2005 burglary crime rate per 100,000 people, used...

A regression model to predict Y, the state-by-state 2005 burglary crime rate per 100,000 people, used the following four state predictors: X1 = median age in 2005, X2 = number of 2005 bankruptcies per 1,000 people, X3 = 2004 federal expenditures per capita, and X4 = 2005 high school graduation percentage.

Predictor Coefficient
  Intercept 4,286.0597   
  AgeMed -26.986   
  Bankrupt 18.5775   
  FedSpend -0.0280   
  HSGrad% -28.5624   

(a) Write the fitted regression equation. (Round your answers to 4 decimal places. Negative values should be indicated by a minus sign.)

yˆy^ =  +  AgeMed +  Bankrupt +  FedSpend +  HSGrad%

(b-1) The 2005 state-by-state crime rate per 100,000

increases by about 27 as the state median age increases.
decreases by about 27 as the state median age increases.

(b-2) The 2005 state-by-state crime rate per 100,000    

increases by about 19 for every 1,000 new bankruptcies filed.
decreases by about 19 for every 1,000 new bankruptcies filed.

(b-3) The 2005 state-by-state crime rate per 100,000           

decreases by 0.028 for each dollar increase in federal funding per person.
increases by 0.028 for each dollar increase in federal funding per person.

(b-4) The 2005 state-by-state crime rate per 100,000      

decreases by about 29 for each 1% increase in high school graduations.
increases by about 29 for each 1% increase in high school graduations.

(c) Would the intercept seem to have meaning in this regression?

No
Yes

(d) Make a prediction for Burglary when X1= 34 years, X2= 7.2 bankruptcies per 1,000, X3= $5,044, and X4= 84 percent.

Burglary Rate

rev: 09_26_2016_QC_CS-62964, 09_20_2017_QC_CS-101173

Solutions

Expert Solution

a) Y-hat = 4.286.0597 - 26.986 AgeMed + 18.5775 Bankrupt - 0.0280 Fedspend - 28.5624 HSGrad

(b-1) The 2005 state-by-state crime rate per 100,000

decreases by about 27 as the state median age increases.

(b-2) The 2005 state-by-state crime rate per 100,000

increases by about 19 for every 1,000 new bankruptcies filed.

(b-3) The 2005 state-by-state crime rate per 100,000   

decreases by 0.028 for each dollar increase in federal funding per person.

(b-4) The 2005 state-by-state crime rate per 100,000

decreases by about 29 for each 1% increase in high school graduations.

(c) Would the intercept seem to have meaning in this regression?

No

(d) Make a prediction for Burglary when X1 = 34 years, X2 = 7.2 bankruptcies per 1,000, X3 = $5,044, and X4 = 84 percent.

Burglary Rate

Y-hat = 4.286.0597 - 26.986 * 34 + 18.5775 *7.2 - 0.0280 *5044 - 28.5624*84
= -3319.95354


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