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Statistics - Regression Model - Find a Point Prediction

See attached file.
The given describes data for each state of the 50 states.

-Total expenditures on a state's criminal justice system (in thousand of dollars)(EXPEND)
-Total number of police employed in the state (POLICE)
-Population of the state (in thousand) (POP) total number of incarcerated prisoners in the state (PRISONER)

State government must try to project spending in many areas. Expenditure on the criminal justice system is one of continually rising cosst. Your job is to build a model that can be used to forecast spending on a state's criminal justice system. Any of the three possible explanatory variables can be used. Be sure to consider violation of any assumptions in building your model and correct any violations. Once your model is complete, predict expenditures for a state that plans to hire 10,000 police personel, has a populations of 3 million, and expects 600 prisoners. Find a point prediction and a 95% prediction interval.


Solution Summary

A Complete, Neat and Step-by-step Solution is provided in the attached Excel file.