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From data for 54 standard metropolitan statistical areas (SMSA), Demaris estimated the following logit model to explain high murder rate versus low murder rate†:
ln Oˆ i = 1.1387 + 0.0014Pi + 0.0561Ci - 0.4050Ri se = (0.0009) (0.0227) (0.1568)

where O = the odds of a high murder rate, P = 1980 population size in thousands, C = population growth rate from 1970 to 1980, R = reading quotient, and the se are the asymptotic standard errors.

a. How would you interpret the various coef?cients?

b. Which of the coef?cients are individually statistically signi?cant?

c. What is the effect of a unit increase in the reading quotient on the odds of having a higher murder rate?

d. What is the effect of a percentage point increase in the population growth rate on the odds of having a higher murder rate?

Microeconomics, Economics

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