Suppose you estimate the sample regression function $$\begin{array} { l }
viol\widehat {ent~c}rime _ { i } = 7.23 - 4.87 \cdot \text { Suburb } _ { i } + 6.11 \cdot \text { Unemployment } _ { i } \
- 1.30 \cdot ( \text { Suburb* Unemployment } ) _ { i } \
\end{array}$$
You should conclude that the marginal effect of unemployment on violent crime in suburbs is
A)-4.87.
B)6.11.
C)-1.30.
D)4.81.

Question

Suppose you estimate the sample regression function $$\begin{array} { l } 
 viol\widehat {ent~c}rime _ { i } = 7.23 - 4.87 \cdot \text { Suburb } _ { i } + 6.11 \cdot \text { Unemployment } _ { i } \
- 1.30 \cdot ( \text { Suburb* Unemployment } ) _ { i } \
\end{array}$$
You should conclude that the marginal effect of unemployment on violent crime in suburbs is
A)-4.87.
B)6.11.
C)-1.30.
D)4.81.

Quizplus · Accepted Answer

The marginal effect of unemployment on violent crime in suburbs is calculated by taking the derivative of the violent crime with respect to unemployment, considering the interaction term. The coefficient for Unemployment is 6.11, and the interaction term coefficient is -1.30. In suburbs, Suburb = 1, so the marginal effect is 6.11 - 1.30*1 = 4.81.

Suppose You Estimate the Sample Regression Function You Should Conclude That the Marginal Effect of Unemployment on }