Data on 220 reported crimes is collected from district X in 2016. Suppose CS denotes the total cost to the state of offering crime protection
Data on 220 reported crimes is collected from district X in 2016. Suppose CS denotes the total cost to the state of offering crime protection services to this district (in thousand dollars), LEOP denotes the number of law enforcement officers on patrol, DTP denotes the damage to public and private property (in thousand dollars), CCTV denotes the number of CCTV cameras installed in the district, and Prison denotes the number of prison inmates. The following table shows the results of a few regressions of the total cost to the state. Dependent variable: total cost to the state (in thousand dollars) Regressor (1) (2) (3) (4) LEOF 12.32 17.99 4.55 18.1 (0.52) '0.84) (2.25) '0.82) DTP 0.73 0.59 0.75 0.06) 0.12) (0.04) CCTV 0.73 (0.13) Prison 2.12 2.11 (0.5) '0.39) Intercept 182.5 191.6 219.95 288.5 (11.52) 6.68) (5.26) (4.14) 0.12 0.75 0.64 0.75 220 220 220 220 Heteroskedasticity-robust standard errors are given in parentheses under coefficients Which of the following statements correctly describe the reasons behind the differences observed in the coefficients in the given specifications? (Check all that apply ) A. The significant rise in the coefficient on LEOP from the 1" specification to the 4" shows the presence of omitted variable bias in the 12 specification. B. The number of CCTV cameras installed in the district appears to be redundant. As reported in regression (4), adding it to regression (2) has a negligible effect on the estimated coefficients on LEOP and DTP or their standard errors. C. According to the 4' specification, reducing the number of law enforcement officers on patrol by one officer is estimated to decrease total cost to the state by approximately $18.10, holding constant other factors. D. The value of R" in the 15t specification suggests that the number of law enforcement officers on patrol alone explains a large fraction of the variation in total cost to the state
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