Suppose you estimate the sample regression function $$\begin{array} { l }
viol\widehat {ent~c}rime _ { i } = 7.23 - 4.87 \cdot \text { Suburb } _ { i } + 6.11 \cdot \text { Unemployment } _ { i } \
- 1.30 \cdot ( \text { Suburb* Unemployment } ) _ { i } \
\end{array}$$
You should conclude that the marginal effect of unemployment on violent crime is
A)the same in cities and suburbs.
B)higher in cities than in suburbs.
C)lower in cities than in suburbs.
D)possibly different in cities and suburbs but we cannot tell from this regression.

Question

Suppose you estimate the sample regression function $$\begin{array} { l } 
 viol\widehat {ent~c}rime _ { i } = 7.23 - 4.87 \cdot \text { Suburb } _ { i } + 6.11 \cdot \text { Unemployment } _ { i } \
- 1.30 \cdot ( \text { Suburb* Unemployment } ) _ { i } \
\end{array}$$
You should conclude that the marginal effect of unemployment on violent crime is
A)the same in cities and suburbs.
B)higher in cities than in suburbs.
C)lower in cities than in suburbs.
D)possibly different in cities and suburbs but we cannot tell from this regression.

Quizplus · Accepted Answer

The Answer is B

Suppose You Estimate the Sample Regression Function You Should Conclude That the Marginal Effect of Unemployment on }