Data were gathered from a simple random sample of cities. Thevariables are Violent Crime (crimes per 100,000 population), PoliceOfficer Wage (mean $/hr), and Graduation Rate (%). Use theaccompanying regression table to answer the following questionsconsidering the coefficient of Police Officer Wage. Complete partsa through d.
Dependent variable is: Violent Crime
R squareds=39.8 % R squared (adjusted)equals=42.1% s=129.6 with37 degrees of freedom
Variable | Coeff | SE (Coeff) | t-ratio | P-value |
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Intercept | 1388.04 | 185 | .6 | 7.48 | | < | 0.0001 |
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Police Officer Wage | 9.43 | 4 | .271 | 2.21 | | | 0.0335 |
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Graduation Rate | −16.54 | 2 | .500 | −6.62 | | < | 0.0001 |
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a) State the standard null and alternative hypotheses for thetrue coefficient of Police Officer Wage
A) Ho: βOfficer=0
HA: βOfficer>0
B. H0: β Officer does not equal≠0
HA: β Officer=0
C. H0: βOfficer =0
HA: βOfficer<0
D. H0: βOfficer=0
HA: βOfficer≠0 Your answer is correct.
b) What is the t-statistic corresponding to this test?
_______ (Type an integer or a decimal.)