William used a sample of 68 large U.S. cities to estimate the relationship betwe

Question

William used a sample of 68 large U.S. cities to estimate the relationship betweenCrime (annual property crimes per 100,000 persons) and Income (median annual income per capita, in dollars). His estimated regression equation was Crime = 428 + 0.050 Income. We can conclude that:

1) crime seems to create additional income in a city.

2) the slope is small so Income has no effect on Crime.

3) wealthy individuals tend to commit more crimes, on average.

4) the intercept is irrelevant since zero median income is impossible in a large city.

Explanation / Answer

Answer: 3) wealthy individuals tend to commit more crimes, on average.

As the slope of the equation is positive, higher income leads to high crime rates.

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