A researcher in the social sciences examined the relationship between
A researcher in the social sciences examined the relationship between the rate ( per 1,000) of nonviolent crimes y based on the rate of nonviolent crimes 5 years ago x1 and the present unemployment rate x2 for cities. Data from 20 different cities are shown here.
a. Determine the fit to the model y = β0 + β1x1 + β2x2 + β3x1x2 + ɛ
b. Examine the assumptions underlying the regression model. Discuss whether the ­assumptions appear to hold. If they don’t, suggest possible remedies.
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