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Question: you estimated the following model that explains crime rate number...

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You estimated the following model that explains crime rate (number of crimes per 100,000 population) as a function of unemployment rate (for example 5 stands for 5%) across 150 largest cities in the US. Assume that unemployment rate in city A is 4%. What would happen to the crime rate in city A if unemployment rate goes down and becomes 1%? . sum crimerate unemprate Obs 150 Variable Mean Std. Dev Min Max 1927 4.2 crimerate 4550.267 8.569333 1500.039 3.050953 9705 26.9 unemprate 150 reg crimerate unemprate df Number of obs = F(1, 148) 150 3.95 0.0486 0.0260 0.0194 1485.4 Source MS Model Residual 8723809.59 326543462 1 8723809.59 ProbF 148 2206374.74 R-squared Adj R-squared- Total 335267271 149 2250115.91 Root MSE crimerate Coef. Std. Err [95% Conf. Interval] unemprate cons 79.30936 39.88513 3870.638 362.6691 1.990.049 10.670.000 4914605 3153.96 158.1272 4587.317 Crime rate goes up by 79 per 100,000 ● Crime rate goes up by 237 per 100,000. Crime rate goes down by 237 per 100,000 Crime rate goes down by 79 per 100,000

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