X1 X3 X7 478 40 20 494 32 18 643 57 16 341 31 19 773 67 24 603 25 15 484 34 14 546 33 11 424 36 12 548 31 15 506 35 9 819 30 36 541 44 12 491 32 16 514 30 11 371 16 14 457 29 10 437 36 27 570 30 16 432 23 15 619 33 8 357 35 13 623 38 11 547 44 8 792 28 11 799 35 18 439 31 12 867 39 10 912 27 9 462 36 8 859 38 10 805 46 12 652 29 9 776 32 9 919 39 11 732 44 14 657 33 22 1419 43 13 989 22 13 821 30 12 1740 86 15 815 30 11 760 32 10 936 43 12 863 20 12 783 55 11 715 44 12 1504 37 13 1324 82 16 940 66 16
The data for this question is given in the file 1.Q1.xlsx(see image) and it refers to data for some cities
X1 = total overall reported crime rate per 1 million residents
X3 = annual police funding in $/resident
X7 = % of people 25 years+ with at least 4 years of college
(a) Estimate a regression with X1 as the dependent variable and X3 and X7 as the independent variables.
(b) Will additional education help to reduce total overall crime (lead to a statistically significant reduction in crime)? Please explain.
(c) Will an increase in funding for the police departments help reduce total overall crime (lead to a statistically significant reduction in total overall crime)? Please explain.
(d) If you were asked to recommend a policy to reduce crime, then, based only on the above regression results, would you choose to invest in education (local schools) or in additional funding for the police? Please explain.
Step by step
Solved in 2 steps
