A sociologist believes that the crime rate in an area is significantly influenced by the area’s poverty rate and median income. Specifically, she hypothesizes crime will increase with poverty and decrease with income. She collects data on the crime rate (crimes per 100,000 residents), the poverty rate (in %), and the median income (in $1,000s) from 41 New England cities. A portion of the regression results is shown in the following table.

a. Are the signs as expected on the slope coefficients?
b. Interpret the slope coefficient for Poverty.
c. Predict the crime rate in an area with a poverty rate of 20% and a median income of$50,000.

  • CreatedJanuary 28, 2015
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