Question: 11.21. Exercise 11.11 showed a regression analysis for statewide data on y = violent crime rate, xi - poverty rate, and X2 = percent living

11.21. Exercise 11.11 showed a regression analysis for statewide data on y = violent crime rate, xi -

poverty rate, and X2 = percent living in urban areas. When we add an interaction term, we get the prediction equation y = 158.9 — 14.72xi —

1.29x2 + 0.76xiX2.

(a) As the percentage living in urban areas increases, does the effect of poverty rate tend to increase or decrease? Explain.

(b) Show how to interpret the prediction equation by finding how it simplifies when X2 = 0, 50, and 100.

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