Question 2: (13 marks)
A criminal justice researcher wants to determine if the unemployment rate influences the crime rate (per 100,000). She found data on both variables for the 25 largest cities in her region. Toward that goal, the researcher would like to use the unemployment rate to predict the crime rate (per 100,000). The results are stored in the Excel data file. (STAT 1123 Assignment 1 Data).
a) Plot a scatter diagram for the unemployment rate and crime rate (per 100,000). Draw a scatter diagram with regression line and regression equation. (Do not forget about the title, regression equation, coefficient of determination r2, and axis labels).
b) State the value of the coefficient of determination R2, and interpret its meaning.
c) Determine and interpret the coefficient of correlation, r.
d) Interpret the slope of the regression line.
e) Use the regression equation to predict the crime rate (per 100,000) for a city with an unemployment rate of 7.0 percent (Do not convert percent to decimal form).
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