Question

Page of 5 ZOOM + A researcher creates a random sample of Metropolitan Statistical Areas (MSAs) to determine whether car theft (per 100,000 population) (Y) is driven by independent variables such as the median income (xi), the unemployment rate (xs), the pupil teacher ratio (xs), the divorce rate (x4) for the MSA, and whether the MSA is located in a southern state (xs) with 0 - no, 1-yes. The edited Data Analysis output is shown below Regression Statistics Multiple R 0.7311 R Square 0.5348 Adjusted Square 0.4810 Standard Error 130.3580 Observations 50 ANOVA dr Regression Residual Total SS MS F 6930400.8187881.4 10.10459 44 818121.1 18593.00 49 1757528 Significance F 1.72340E-06 Upper Coefficients -1231.62 0.03 38.81 Intercept Income Unem Pupil Tea Divorce South SE 248.68 0.01 17.51 9.36 19.50 48.67 Sta! P-value 4.9533 1.12E-06 4.3009 0.31E-05 2.2159 0.031018 4.4231 6.31E-05 0.8774 0.385050 2 3931 0.02089 Lower 95% - 1732.74 0.01 3.51 22.55 -2220 18.53 -730.50 0.04 74.11 60.20 58.59 214.88 17.10 110.61 5: What independent variable is not statistically significant at the .05 significance level? A. Unemployment Rate. B. Pupil Teacher Ratio C. Divorce Rate D. South rearious

Answer 1

(5).

The independent variable is said to be not statistically significant if the p-value is greater than the level of significance.

The p-value correspond to the independent variable “Divorce Rate” is 0.385059 which is greater than the level of significance 0.05. Thus, the independent variable “Divorce Rate” is not statistically significant.

Hence, the correct answer is C. Divorce Rate.

(6).

The p-value correspond to the dummy variable “South” is 0.02089 which is greater than the level of significance 0.05. Hence, the dummy variable “South” is statistically significant.

The slope coefficient correspond to the dummy variable “South” is 116.61 which is positive. Hence, the correct option is B. South is statistically significant; being a MSA in the South increases car theft by 116.61.