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A regression was estimated in which the dependent variable was the median home price in a neighborhood. The independent variables were crime, the crime rate in the neighborhood, nox, the amount of nitrous oxide in the neighborhood’s air (a measure of pollution), and rooms, the average number of rooms in the neighborhood’s houses. (t statistics in parenthesis).
price ˆ = − 1937.70 − 204.89crime − 10.46nox + 6386.09rooms (−5.96) (−5.10) (−3.91) (15.39)
Statement: These results indicate that crime is a more important determinant of housing prices than is air pollution.
Agree or Disagree with the statement.
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