Goal 2.1.6. Students will generate and interpret summary statisties and regressi

Question

Goal 2.1.6. Students will generate and interpret summary statisties and regression models. Below are the regression results of a study on murders in various cities in the United States. The dependent variable is homicides in a city. Goal 2.1.6Students will generate and - Linear Regression Number of Obs201 Prob> F 0.00 R-squared = 0.43 Root MSE 1099 Variable Per Capita Police Spending Per Capita Charity Spending Per Capita Prison Spending # of Intoxication Arrests Intercept Coefficient -0.5 -2 155 Std. Error 0.24 10 1.2 0.1 10 2.1 0.2 1.8 8.0 14 0.049 0.98 0.063 0.012 0.001 Please explain in an easy to understand manner the coefficient on Police Spending. what variables are statistically significant at the 5% level? Is this regression explaining then number of murders in a city well? (Yes/No) How do you know?

Explanation / Answer

The coefficient of police spending is negative value it means the number of murder in various cities of United States and police spending are inversely proportional to each other. It concludes that the number of murder decreases when police spending increases.

If the p value is less than 0.05 than the null hypothesis is rejected. If the p value is greater than 0.05 the null hypothesis is accepted.

The variable intoxication Arrests and intercept have p value 0.012 and 0.001 which is less than 0.05. Hence the null hypothesis is rejected. It means they are significant.

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