rinterface
Pre-conditions for using the Linear Regression Model . . .
General form of the linear regression model \[y = \beta{_0} + \beta{_1}x\] \[\widehat{Murders_{PerMillion}} = b{_0} + b{_1} \times{Poverty_\%}\]
Assign the value of the least squares slope and the intercept. The entries in the first column of table 7.29 represent the least squares estimates, \(b{_0}\) and \(b{_1}\) \[Estimated\:Intercept\: b{_0} = {-29.901};\:Estimated\:Slope\:{b{_1} = 2.559}\] \[\widehat{Murders_{PerMillion}} = -29.901 + 2.559 \times{Poverty_\%}\]
Interpret the intercept \(b{_0}\).
The intercept is the estimated murder rate when the percentage of poverty is 0.
When the percentage of poverty is zero, the predicted murder rate is -29.901 which extrapolated and outside the range of reasonable predictions for two reasons:
Interpret the slope \(b{_1}\).
Interpret \(R{^2}\).
The R2 of a linear model describes the amount of variation in the response that is explained by the least squares line. The textbook description for this was the strength of the least squares fit between the two variables which describes how closely the data cluster around the linear fit.
In this case, poverty% explains 70.52% of the variability of murder rates in metropolitan areas.
\[{R{^2} = \frac{{{s_{murder}}{^2}} - {{s_{res}}{^2}}}{{s_{murder}}{^2}}}\]
Calculate the Correlation Coefficient