Question: Table 11.14 shows Stata output from fitting the multiple regression model to recent statewide data, excluding D.C., on y = violent crime rate (per 100,000

Table 11.14 shows Stata output from fitting the multiple regression model to recent statewide data, excluding D.C., on y = violent crime rate (per 100,000 people), x1 = poverty rate (percentage with income below the poverty level), and x2 = percentage living in urban areas.

(a) Report the prediction equation.

(b) Massachusetts had y = 805, x1 = 10.7, and x2 = 96.2.

Find its predicted violent crime rate. Find the residual, and interpret.

(c) Interpret the fit by showing the prediction equation relating ˆy and x1 for states with (i) x2 = 0, (ii) x2 = 100.

Interpret.

(d) Interpret the correlation matrix.

(e) Report R2 and the multiple correlation, and interpret.

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