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m) In a last attempt to say something relevant, Tom argues that states with a larger proportion of black population are likely to suffer from more crimes. Is this argument consistent with MODEL 4? Explain it in terms of both interpretation and statistical significance.
Table 1.3: OLS estimates The dependent variable is below each of the models Model (1) Model (2) Model (3) Model (4) vio vio log(vio) log(vio) const UCCW unemp 20,140.97 (6,000.81) -5,550.13 (1,168.42) 6,118.93 (2,237.52) -6,208.56 (1,882.59) 7,467.35 (433.58) 19,342.81 (5,881,01) -5,297.75 (1,057.65) 6,007.40 (2,113.32) -6,114.62 (1,652.71) 7,456.55 (388.17) 382.18 (155.50) 122.97 (10.69) 0.181 (0.491) -0.038 (0.008) 0.144 (0.039) -0.155 (0.047) -0.116 (0.009) 0.177 (0.392) -0.037 (0.009) 0.139 (0.055) -0.156 (0.066) -0.117 (0.014) educ pmale pcincome density log(pcincome) log(density) 0.988 (0.402) 0.092 (0.008) pblack 0.955 (0.444) 0.091 (0.009) 0.003 (0.018) 51 0.576 0.481 12.83 Sample Size R-squared Adj. R-squared 51 0.397 0.344 4,447.62 51 0.483 0.412 2,964.44 51 0.555 0.494 12.02 SSR (RSS) A Dual BBA second year student at IE University (Tom) is invited for the first time to have dinner with his girlfriend's parents. During the dinner, his girlfriend's mother (Ms. Smith) and Tom have a heated and excited conversation about whether less guns reduce violent crime rates. Unfortunately, Tom does not know that Ms. Smith is a recognized econometrician. Mary, Tom's girlfriend, looks uncertain about how this conversation is going to end. Indeed, Ms. Smith wrote a research paper in Applied Econometrics Review last year about the main determinants of violent crime rates in the states of USA in 2019 focusing on the effect of Unrestricted Concealed Carry Weapon laws (UCCW). A UCCW law is a right-to- carry law in which a permit to carry a gun is not required. This type of policy is applied in some of the 51 states of the USA (other states apply more restrictive CCW laws). For example, Arizona is one of the states applying a UCCW law and not requirements are needed while Colorado requires a license fulfilling some requirements in order to carry a gun. In pages number 4, 5 and 6, you can find the description of variables that Ms. Smith used in her paper, the correlation matrix, some graphical analysis and the OLS estimation results that she obtained using different model specifications. Table 1.3: OLS estimates The dependent variable is below each of the models Model (1) Model (2) Model (3) Model (4) vio vio log(vio) log(vio) const UCCW unemp 20,140.97 (6,000.81) -5,550.13 (1,168.42) 6,118.93 (2,237.52) -6,208.56 (1,882.59) 7,467.35 (433.58) 19,342.81 (5,881,01) -5,297.75 (1,057.65) 6,007.40 (2,113.32) -6,114.62 (1,652.71) 7,456.55 (388.17) 382.18 (155.50) 122.97 (10.69) 0.181 (0.491) -0.038 (0.008) 0.144 (0.039) -0.155 (0.047) -0.116 (0.009) 0.177 (0.392) -0.037 (0.009) 0.139 (0.055) -0.156 (0.066) -0.117 (0.014) educ pmale pcincome density log(pcincome) log(density) 0.988 (0.402) 0.092 (0.008) pblack 0.955 (0.444) 0.091 (0.009) 0.003 (0.018) 51 0.576 0.481 12.83 Sample Size R-squared Adj. R-squared 51 0.397 0.344 4,447.62 51 0.483 0.412 2,964.44 51 0.555 0.494 12.02 SSR (RSS) A Dual BBA second year student at IE University (Tom) is invited for the first time to have dinner with his girlfriend's parents. During the dinner, his girlfriend's mother (Ms. Smith) and Tom have a heated and excited conversation about whether less guns reduce violent crime rates. Unfortunately, Tom does not know that Ms. Smith is a recognized econometrician. Mary, Tom's girlfriend, looks uncertain about how this conversation is going to end. Indeed, Ms. Smith wrote a research paper in Applied Econometrics Review last year about the main determinants of violent crime rates in the states of USA in 2019 focusing on the effect of Unrestricted Concealed Carry Weapon laws (UCCW). A UCCW law is a right-to- carry law in which a permit to carry a gun is not required. This type of policy is applied in some of the 51 states of the USA (other states apply more restrictive CCW laws). For example, Arizona is one of the states applying a UCCW law and not requirements are needed while Colorado requires a license fulfilling some requirements in order to carry a gun. In pages number 4, 5 and 6, you can find the description of variables that Ms. Smith used in her paper, the correlation matrix, some graphical analysis and the OLS estimation results that she obtained using different model specifications
