Scatterplots, Least Squares Regression, Coefficient of Determination and Forecasting
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A) Construct a scatter diagram of the number of crimes and police expenditures per capita, with number of crimes as the predictor variable. What can you say about the relationship between these two variables based on the scatter plot?
b) Find the least-squares regression equation that predicts police expenditures per capita from the number of crimes. What is the slope? What is the intercept?
c) Calculate the coefficient of determination (r²), and provide interpretation.
d) If the number of crimes increased by 100 for a state, by how much would you predict police expenditures per capita to increase?
e) Does it make sense to predict police expenditures per capita when the number of crimes is equal to zero? Why or why not?
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