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For a sample of 30 Australian cities, a sociologist studies the crime rate in each city (crime per 100,000 residents) as a function of its poverty rate (in %) and its average income (in $1,000). A portion of the regression results shows that the coefficients for poverty and average income are 54.22 and 5.10, respectively. Based on this information, what is the value of test statistic used to test the null hypothesis that X1 has no significant effect on Y at the 5% level of significance, if the standard error of the slope of Y with variable X1 equals 15.50. Round your final answer to two decimal places. Note: Y = crime rate in each city (crime per 100,000 residents); X1 = poverty rate (in %); and X2 = average income (in $1,000).

Question

For a sample of 30 Australian cities, a sociologist studies the crime rate in each city (crime per 100,000 residents) as a function of its poverty rate (in %) and its average income (in 1,000).Aportionoftheregressionresultsshowsthatthecoefficientsforpovertyandaverageincomeare54.22and5.10,respectively.Basedonthisinformation,whatisthevalueofteststatisticusedtotestthenullhypothesisthatX1hasnosignificanteffectonYatthe51,000). A portion of the regression results shows that the coefficients for poverty and average income are 54.22 and 5.10, respectively. Based on this information, what is the value of test statistic used to test the null hypothesis that X1 has no significant effect on Y at the 5% level of significance, if the standard error of the slope of Y with variable X1 equals 15.50. Round your final answer to two decimal places. Note: Y = crime rate in each city (crime per 100,000 residents); X1 = poverty rate (in %); and X2 = average income (in 1,000).

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Solution

The test statistic is calculated by dividing the coefficient of the variable by the standard error of the slope. In this case, the coefficient of X1 (poverty rate) is 54.22 and the standard error of the slope is 15.50.

So, the test statistic = 54.22 / 15.50 = 3.50 (rounded to two decimal places).

Therefore, the value of the test statistic used to test the null hypothesis that X1 has no significant effect on Y at the 5% level of significance is 3.50.

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For a sample of 40 Australian cities, a sociologist studies the crime rate in each city (crime per 100,000 residents) as a function of its poverty rate (in %) and its average income (in $1,000). A portion of the regression results shows that the coefficients for poverty and average income are 54.22 and 5.10, respectively. Based on this information, what is the upper critical value used to test the null hypothesis that X1 has no significant effect on Y at the 1% level of significance? Note: Y = crime rate in each city (crime per 100,000 residents); X1 = poverty rate (in %); and X2 = average income (in $1,000).

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