1. (10 points) You are given the following regression results : SUMMARY OUTPUT Regression Statistics Multiple R 0.6732873 R Square 0.45331579 Adjusted R Square 0.37703427 Standard Error 145.202147 Observations 50 ANOVA df SS MS F Significance F Regression 6 751759.355 125293.226 5.94266862 0.00013891 Residual 43 906597.533 21083.6635 Total 49 1658356.89 Coefficients Standard Error t Stat P-value Intercept 719.593622 775.395745 0.92803401 0.35857017 COPS06 0.00565077 0.00256171 2.20585521 0.03278751 INPRISON06 -0.0032727 0.00173076 -1.890892 0.06538868 PCTINCARC06 35831.7356 10073.9634 3.55686577 0.00092874 PCTHSGRAD -1013.2893 894.527951 -1.1327642 0.26359019 UNEMPL06 30.9903761 22.5572948 1.37385162 0.17660773 MEDHHINC 0.00318548 0.00335531 0.94938637 0.34772978 Dependent Variable (Y-variable) is Violent Crimes per 100,000 residents in 2006 in all 50 states. The independent variables (X-variables) are given below. 1. COPS06 Public Law Enforcement Officers, 2006 2. INPRISON06 Number of people in prison, 2006 3. PCTINCARC06 Percent of Adult Population in prison, 2006 4. PCTHSGRAD Percent of Adult Population with High School Diploma or

equivalent

5. UNEMPL06 Statewide Unemployment Rate, 2006 6. MEDHHINC Median Household Income, 2006 (a) Based on the regression results which are the significant determinants of the violent crimes? (b) Does jailing more criminals reduce violent crime rates? Please give an explanation based on the above regression results only. (c) Will hiring additional police reduce violent crime rates? Please give an explanation based on the above regression results only. (d) Based on the regression results given above, what policies would you recommend for reducing violent crime rates? Please explain.