b-2. At the 5% significance level, what is the conclusion to the test? multiple choice 2 Do not reject H0we cannot conclude that the poverty rate and the crime rate are linearly related. Reject H0we can conclude that the poverty rate and the crime rate are linearly related. Do not reject H0we can conclude that the poverty rate and the crime rate are linearly related. Reject H0we cannot conclude that the poverty rate and the crime rate are linearly related. c-1. Construct a 95% confidence interval for the slope coefficient of income. (Negative values should be indicated by a minus sign. Round "tα/2,df" value to 3 decimal places, and final answers to 2 decimal places.)

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Author:Amos Gilat
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For a sample of 20 New England cities, a sociologist studies the crime rate in each city (crimes per 100,000 residents) as a function of its poverty rate (in %) and its median income (in $1,000s). A portion of the regression results is as follows. [You may find it useful to reference the t table.]

ANOVA df SS MS F Significance F
Regression 2 3,949.5 1,974.8 0.28 0.756
Residual 17 118,203.96 6,953.17    
Total 19 122,153.4      
 
  Coefficients Standard
Error
t Stat p-value
Intercept 726.7716 120.7822 6.017 0.000
Poverty 4.7901 6.4031 0.7480 0.465
Income -2.8372 18.4228 −0.1540 0.879
 

Choose the appropriate hypotheses to test whether the poverty rate and the crime rate are linearly related.

multiple choice 1

  • H0β1 ≥ 0; HAβ1 < 0

  • H0β1 = 0; HAβ1 ≠ 0

  • H0β1 ≤ 0; HAβ1 > 0

b-2. At the 5% significance level, what is the conclusion to the test?

multiple choice 2

  • Do not reject H0we cannot conclude that the poverty rate and the crime rate are linearly related.
  • Reject H0we can conclude that the poverty rate and the crime rate are linearly related.
  • Do not reject H0we can conclude that the poverty rate and the crime rate are linearly related.
  • Reject H0we cannot conclude that the poverty rate and the crime rate are linearly related.

c-1. Construct a 95% confidence interval for the slope coefficient of income. (Negative values should be indicated by a minus sign. Round "tα/2,df" value to 3 decimal places, and final answers to 2 decimal places.)

c-2. Using the confidence interval, determine whether income influences the crime rate at the 5% significance level.

multiple choice 3

  • Income is significant in explaining the crime rate, since its slope coefficient significantly differs from zero.

  • Income is not significant in explaining the crime rate, since its slope coefficient significantly differs from zero.

  • Income is not significant in explaining the crime rate, since its slope coefficient does not significantly differ from zero.

  • Income is significant in explaining the crime rate, since its slope coefficient does not significantly differ from zero.

 

 

 

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