Question

only answer （b）please

Short Answer 2. Solve the following problems and answer concisely 2.1 Guns and Crime (15 points) The following regression table shows the estimation results studying the relationship between guns and crime rates in the United States (6) Log(robbery) (4) Log(violent) Log(violent) Log(violent) Log(violent) -0.1436 (0.1236) (1) (2) (3) (5) Violent concealed carry-law -0.4430 (0.0475) -0.2479 (00145) -122.88 (80.03) -0.2456 (0.0368) -0.1276 (0.0902) incarceration rate 0.1259 (0.0056) 0.0211 (0.0017) 336.31 (12.72) 0.0519 (0.0001) 2.984 log incarceration rate (17.68) 0.0317 (0.0006) 0.0416 (0,0070) 56.57 (S.443 -35.63 (3.282) 0.0712 (0.0002) percent male income -0.0752 -0.0688 (0.0043) 4.4327 (0.1456 0.4256 -0.0219 (0.0003) (0.0068) Intercept 4.5619 (0.0723) 0.5190 5.6678 (0.0985) 5.7891 (0.1359) -2615.41 (1464) 0.5221 3.9118 (0.0934) 0.5002 0.3533 0.4455 Observations 50 50 50 50 50 50 The sample includes the following variables for each state in the United States where Violent: Number of violent crime incidents in a state. Robbery: Number of robbery incidents in a state. Concealed carry-law: equals 1 if the state has a law that allows citizens to carry concealed weapons and zero otherwise. Incarceration rate: Number of prisoners in a state (in 1,000) Percent Male: Percent of state population that is male. Income: Per capita income in a state, in $1,000 (a) (2 points) Does the regression in column (1) suffer from omitted variable bias? Explain why or why not? (b) ( points) Interpret the estimated coefficient on concealed carry-law in column (1) (e) ( points) Interpret the coefficient on log incarceration rate in column (2) (d) (4 points) Test whether the percentage of state population that is male and the per capita income ina state are jointly significant on the 1% significance level in column (4) Define the hypothesis, test statistic, critical level and state your decision (e) (2 points) Can we compare the regression equations in columns (2) and (4)? If so, which regression provides the best fit? (f) (2 points) Can we compare the regression equations in columns (4) and (6)? If so, which regression provides the best fit? (g) (2 points) Is there statistical evidence from the regression results in column (6) that allowing citizens in a state to carry concealed weapons reduces robbery incidents? (h) ( point)An advocacy group "For a safer America" suggests that reducing the number of prisoners in states with very high crime rates will reduce the crime rates in these states and will make America safer. Do you agree? 4

Answer 1

(b)

Coefficient of concealed carry-law is - 0.4430, which means that as concealed carry law increases (decreases) by 1%, violence decreases (increases) by 0.4430%.