Question
Suppose the following are the results of a linear regression with the unemployment rate in decimal form as the dependent variable and population density and
Suppose the following are the results of a linear regression with the unemployment rate in decimal form as the dependent variable and population density and local tax rate as the independent variables. The local tax rate is a percentage in decimal form. The coefficient on population density is 0.00002 with a p-value of 0.0001. The coefficient on the number of local tax rate is 0.258 with a p-value of 0.8576. What can be said about the relationship between the unemployment rate and population density?
Increasing population density by 1,000 increases the unemployment rate by 0.1
Increasing population density by 1,000 decreases the unemployment rate by 0.00002
Increasing population density by 1,000 decreases the unemployment rate by 0.02
At a 5% Level of Significance, population density doesn't have a statistically significant impact on the unemployment rate
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