William used a sample of 68 large U.S. cities to estimate the relationship between Crime (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:
A)the slope is small so Income has no effect on Crime.
B)crime seems to create additional income in a city.
C)wealthy individuals tend to commit more crimes, on average.
D)the intercept is irrelevant since zero median income is impossible in a large city.

Question

Quizplus · Accepted Answer

The intercept in a regression equation represents the expected value of the dependent variable (in this case, Crime) when all independent variables (in this case, Income) are equal to zero. Since it's unrealistic for a large city to have a median annual income of zero dollars, the intercept in this context does not have a practical interpretation, making it irrelevant for practical purposes. The other options misinterpret the relationship between Crime and Income as indicated by the regression equation.

William Used a Sample of 68 Large U