For this homework, you are to use the dataset, crime.dta. The data contains state-level information on crime rates and other related variables. For this exercise, you will use the variables crimrate (crimes per 10,000 persons) and poverty (percent population in poverty).
Run a regression model where crime rate (crimrate) is the dependent variable and percent poor (poverty) is the independent variable.
FORMULAS AND CALCULATIONS MUST BE SHOWN.
a. Interpret the R2
b. Interpret the value of the slope coefficient on the variable poverty.
c. Interpret the value of intercept term (or constant).
d. Conduct a significance test on the slope coefficient. Is it significant? In your answer, please write out the null and alternative hypotheses, the test statistic, p-value and alpha.