Ticket prices, part 2. Here's a multiple regression model for the variables considered in Exercise 12:7

Dependent variable is: Receipts($M)

R squared = 99.9% R squared (adjusted) = 99.9% s = 0.0931 with 74 degrees of freedom

Source     Sum of Squares df  Mean Square  F-ratio

Regression 484.789       3 161.596     18634

Residual     0.641736    74   0.008672

Variable        Coeff   SE(Coeff) t-ratio P-value

Officer Wage in the regression table of Exercise 13.

a) State the standard null and alternative hypotheses for the true coefficient of Police Officer Wage.

b) Test the null hypothesis (at a = 0.05) and state your conclusion.

c) A state senate aide challenges your conclusion. She points out that we can see from the scatterplot and correla- tion (see Exercise 11) that there is almost no linear rela- tionship between police officer wages and violent crime. Therefore, she claims, your conclusion in part a must be mistaken. Explain to her why this is not a contradiction.