Police salaries, part 4.

Consider the coefficient of Police Officer Wage in the regression table of Exercise 13.

a) State the standard null and alternative hypotheses for the true coefficient of Police Officer Wage.

b) Test the null hypothesis (at 0.05) and state your conclusion.

c) A state senate aide challenges your conclusion. She points out that we can see from the scatterplot and correlation

(see Exercise 11) that there is almost no linear relationship between police officer wages and violent crime.

Therefore, she claims, your conclusion in part a must be mistaken. Explain to her why this is not a contradiction.