Police salaries, part 2.

Here’s a multiple regression model for the variables considered in Exercise 11.

a) Write the regression model.

b) What does the coefficient of Police Officer Wage mean in the context of this regression model?

c) In a state in which the average police officer wage is $20/hour and the high school graduation rate is 70%, what does this model estimate the violent crime rate would be?

d) Is this likely to be a good prediction? Why do you think that?

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Dependent variable is: Violent Crime R squared = 53.0% R squared (adjusted) = 50.5% S = 129.6 with 37 degrees of freedom Source Sum of Squares df Mean Square F-ratio. Regression 701648 20.9 2 350824 Residual 621060 37 16785.4 Variable Coeff SE(Coeff) t-ratio P-value Intercept 1390.83 185.9 7.48 <0.0001 Police Officer Wage 9.33 4.125 2.26 0.0297 Graduation Rate -16.64 2.600 -6.40 <0.0001