Interpreting the OLS estimator
Problem
Data: Crime data at http://www.oswego.edu/~kane/econometrics/data.htm .
Run a regression with y = crime, x2 = pov, x3 = metro, x4 = popdens. Give an exact interpretation of \(b_2\) . The interpretation must include the units, see the attached text file for the data.
Solution
As poverty increases by 1 percentage point, the expected number of crimes is estimated to increase by 83.3 crimes per 100,000 population given that metroplitan population as % of state population
and population per square mile remains the same.