The file Crime contains yearly observations for the crime rates in the United States from 1980 to 2019. The column F contains information on party affiliation of The President during that year.

a.Make a trend variable and a dummy variable for the party affiliation of The President of the United States for each year in the data.

b.Using the scatterplot, check if there is a time trend for total number of crime (for your scatterplot, time trend variable should be on horizontal axis and violent crime should be on vertical axis). Why do you think you get the result you get? Please insert your scatterplot below.

c.Estimate a regression in which the dependent variable is Violent Crime and independent variables are trend and the dummy variable for the party affiliation (that you created in part a). Insert the table with results here.

d.Interpret estimated coefficients. Interpret R-square and Anova part of the regression table.

e.Now your friend is saying that President Trump has been the best in reducing crime in the United States. You want to check Lenny's (the friend from the midterm) claim and thus you estimate the following equation:

Violent crime = Bo + B1 population + B2 Trend + B3 Trump + u

Insert the table with your estimated equation here and interpret estimated coefficients.

f.You suspect that population growth and trend are highly correlated. Check for the correlation and explain what problem it could create for your estimated regression.

g.Now, instead of the total number of violent crime, use the variable Violent Crime Per Resident variable (Violent/pop). This variable shows % of violent crime each resident in the United States (so value 0.44 would mean we have 0.44% of violent crimes per resident). Estimate the following regression:

Insert the table with your results here and interpret them.