2. A regression model to predict a state's burglary crime rate per 100,000 people in 2005 (y) used thefollowing four independent variables: £₁ = median age, x2 = number of bankruptcies per 1,000 people, x3 =federal expenditures per capita, and x4 = high school graduation percentage. A summary of the regressionoutput is below.Variable (nickname)InterceptMedian age (AgeMed)Bankruptcies (Bankrupt)Coefficient4,198.5808-27.354017.4893-0.0124-29.0314Federal expenditures (FedSpend)Graduation rate (HSGrad%)(a) Write the fitted regression equation. Round your coefficients to 4 decimal places.(b-1) Put an X in the correct answer circle. The 2005 state-by-state crime rate per 100,000 people...increases by about 20 as the state median age decreases.increases by about 27 as the state median age decreases.decreases by about 27 as the state median age increases.decreases by about 17 as the state median age increases.(b-2) Put an X in the correct answer circle. The 2005 state-by-state crime rate per 100,000 people...decreases by about 7 for every 1,000 new bankruptcies filed.O increases by about 27 for every 1,000 new bankruptcies filed.decreases by about 17 for every 1,000 new bankruptcies filed.increases by about 17 for every 1,000 new bankruptcies filed.(b-3) Put an X in the correct answer circle. The 2005 state-by-state crime rate per 100,000 people...O decreases by .025 for each dollar increase in federal funding per person.O increases by .05 for each dollar increase in federal funding per person.O increases by .0124 for each dollar increase in federal funding per person.decreases by .0124 for each dollar increase in federal funding per person.(b-4) Put an X in the correct answer circle. The 2005 state-by-state crime rate per 100,000 people...increases by about 19 for each 1% increase in high school graduations.decreases by about 29 for each 1% increase in high school graduations.increases by about 29 for each 1% increase in high school graduations.decreases by about 19 for each 1% increase in high school graduations.(c) The intercept is meaningful.(d) Make a prediction for Burglary when x₁ = 35 years, x₂ = 7.0 bankruptcies per 1,000, x3 = $6,000, and*4 = 80.TrueFalse 3. Consider the following data that come from an online survey of individual investors. The investors wereasked to rate the brokerage firm they use on three different aspects: price, speed, and overall satisfaction.For each of these, the investor could respond with a 0, 1, 2, 3, or 4 rating, with 0 being the worst and 4 thebest. The data set below shows the average scores for 14 brokerage firms.BrokerageScottrade, Inc.Charles SchwabFidelity Brokerage ServicesTD AmeritradeE-Trade FinancialUnknown InvestmentsVanguard Brokerage ServicesUSAA Brokerage ServicesThinkorswimWells Fargo InvestmentsInteractive BrokersZecco.comFirstrade SecuritiesTradeprice3.43.23.12.92.92.52.62.42.62.33.72.53.0Bank of America Investment Services 4.0Speed ofexecution3.43.33.43.63.23.23.83.82.62.74.02.53.01.0Satisfactionrating3.53.43.93.72.92.72.83.62.62.34.02.54.02.0(a) Investors are, on average, more satisfied with brokerage prices than they are brokerage speed.TrueO False(b) Run a regression with y = overall satisfaction rating and the other two variables as the variables. Usethe results to answer the following.3(b-1) Both Price and Speed appear to have important effects on Overall Satisfaction. True(b-2) Price has a larger effect on Overall Satisfaction than does Speed.O True(b-3) Price & Speed collectively explain over half the variation in Overall Satisfaction. True(b-4) This regression passes a residual analysis.O True(c) There is an outlier in these data. Identify it, drop it, and rerun the regression. Then, answer the followingquestions.(c-1) Which brokerage firm was the outlier?(c-2) Both Price and Speed appear to have important effects on Overall Satisfaction.(c-3) Price has a larger effect on Overall Satisfaction than does Speed.(c-4) Price & Speed collectively explain over half the variation in Overall Satisfaction. True(C-5) This regression passes a residual analysis.(c-6) Predict the Satisfaction rating of a firm with a Price Score = 2.0 & Speed Score = 3.0.TrueTrueTrueFalseO FalseFalseFalseFalseFalseFalseO False

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