Lab 6
Matthew Grattan

Identify the explanatory and response variable for estimating Crime given the level of Poverty. What is the regression equation for predicting Crime rate given the poverty level?

Explanatory Variable: Poverty Rate. Response Variable: Violent Crime. 72.798635 + 25.800083 People in Poverty Rate by Household Income (in thousands)


What is the linear correlation coefficient between Poverty and Crime?

R (correlation coefficient) = 0.98381039


Using run a full hypothesis test using the test statistic listed in Step 5 to see if the data is linearly correlated. Make sure you write out your conclusion. Based on your conclusion, is the regression line a good prediction or not?

Reject the null, there is sufficient evidence to show that poverty rate does affect the amount of violent crimes committed. The regression line is a good predictor.


R2  The percent of variation (e.g. variance) explained by the regression line is described by the coefficient of determination. The regression line explains what proportion of variation in crime rates? Is this proportion high or low? Does it leave “a lot” or “not so much”unexplained variation?

95% variation, the proportion is high with not so much explained variation


Histogram of Residuals Plot. What is the shape of the histogram of residuals? Is this problematic or a good thing?

The residual plot is bell shaped. It’s bad because it shows there is a strong relationship between poverty and violent crime.


Predict the Crime amount when the Poverty level is 4000. Interpret your answer in terms of the data and numbers of people

103,127 violent crimes, if the Poverty level was 4000 expect roughly this amount of crimes


Do you think Poverty causes Crime? Or is there a lurking variable that we did not consider? Explain

Poverty and crime definitely have a strong relationship, but there could always be a lurking variable such as location and the political stability of certain areas.

Test Stat: 38.4148
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