Chapter 13.3, Problem 12SE

A regression model to predict Y, the state burglary rate per 100,000 people for 2005, used the following four state predictors: X1 = median age in 2005, X2 = number of 2005 bankruptcies, X₃ = 2004 federal expenditures per capita (a leading predictor), and X₄ = 2005 high school graduation percentage. (a) Calculate the t statistic for each coefficient to test for β_j = 0. (b) Look up the critical value of Student’s t in Appendix D for a two-tailed test at α = .01. Which coefficients differ significantly from zero? (c) Use Excel to find a p-value for each coefficient.