Mary used a sample of 68 large U. S. cities to estimate the relationship between Crime (annual property crimes per 100,000 persons) and Income (median annual income per capita, in dollars). Her estimated regression equation was Crime = 428 + 0.050 Income. If Income decreases by 1000, we would expect that Crime will:

decrease by 50

Go up by 428

increase by 50

Remain unchanged

Question

Damon Paul

Business

9 March, 01:57

Mary used a sample of 68 large U. S. cities to estimate the relationship between Crime (annual property crimes per 100,000 persons) and Income (median annual income per capita, in dollars). Her estimated regression equation was Crime = 428 + 0.050 Income. If Income decreases by 1000, we would expect that Crime will:

decrease by 50

Go up by 428

increase by 50

Remain unchanged

+3

Answers (1)

Know the Answer?

Korbin · Answer 1

Decrease by 50.

Explanation:

Estimated regression equation was:

Crime = 428 + 0.050 Income

Above regression equation says that if there is an increase in the income level by $1 then as a result crime increases by 5% which shows that there is a direct relationship between the income level and crime level.

Hence, if Income decreases by 1000, then we would expect that Crime will decreases by:

= 0.050 * 1,000

= 50

Decrease by 50.