The accompanying multiple regression model was developed to relate violent crime

Question

The accompanying multiple regression model was developed to relate violent crime to police officer wage and graduation rate.

The accompanying multiple regression model was developed to relate violent crime to police officer wage and graduation rate. A hypothesis test (at alpha = 0.05) for the true coefficient of Police Officer Wage with H_0: beta_Officer = 0 and H_A: beta_Officer notequalto 0 produced a p-value of 0.8262 and the null hypothesis was not rejected. A Senate side accepts this analysis but claims that it demonstrates that if the state pays police more, it will actually increase the rate of violent crime. Explain why this interpretation is not a valid use of this regression model. Offer some alternative explanations. Explain why this interpretation is not a valid use of this regression model. Select all appropriate responses below. A. That coefficient of police officer wages cannot be distinguished from 0. B. The causal interpretation is backwards: an increase in violent crime causes an increase in police officer wage. C. The value of the coefficient suggests an inverse relationship rather than a direct one. D. This is causal interpretation, which is not supported by regression. Offer some alternative explanations. Select all reasonable explanations below. A. In states with high police officer wages, the police may overreport violent crimes to justify their salaries. B. It may be that states with higher violent crime rates choose (or are obliged) to spend more to hire police officers. C. States with higher costs of living must pay more to attract qualified police officers but also have higher crime rates (e.g. a state that is composed of large cities). D. States with low graduation rates will not have to pay police officers as much due to lack of competition.

Explanation / Answer

Ans:The casual interpretation is backward.

Hence,Option B is true.

Alternative explanation:

Option A and B is true.

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