The following regression results were obtained from a regression of Total Crime Rates in the US (Y) on Life expectancy of South Africa (X), Y
The following regression results were obtained from a regression of Total Crime Rates in the US (Y) on Life expectancy of South Africa (X), Y = -24569 + 628.9X R2 = 0.929 (-6.03) (9.04) What do you understand by the term 'spurious regression'? Are the reported results evidence of a spurious regression? Explain fully. [30 marks]
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