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Multiple regression - Term Paper Example

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Executive Summary Multiple regression is an effective technique to identify a relationship between one dependent variable and multiple independent variables. It is hypothesized the property crime rates per thousand inhabitants is dependent on multiple factors such as per capita income, school dropout percentage, population density, percentage of people living in urban area and so on…

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Multiple regression

Multiple regression is an effective technique to identify a relationship between one dependent variable and multiple independent variables. It is hypothesized the property crime rates per thousand inhabitants is dependent on multiple factors such as per capita income, school dropout percentage, population density, percentage of people living in urban area and so on. In order to establish a certain relationship between the variables, multiple regression was used. While crimes is the dependent variable, other variables such as state, per capita income, dropouts, average precipitation, public aid recipients, population density, unemployment, percentage of people living in urban areas were considered as independent variable. Minitab was used to perform multiple regression analysis. It was found that only two variables had a significant relationship with the variable crime rates: dropouts and urban. It was found that as percentage of dropouts increased, the crime rate per thousand inhabitants also increased. It is also evident from the data set that urban areas are having higher crime rates as compared to rural areas. Other variables included in the study did not have much impact on the dependent variable. The first column of the table below shows the regression coefficient of all the independent variables. The second column contains the standard error of the regression coefficient. The standard error of all the variables is the distance of the standard value from its true value. ...
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