1. By Sam Kider Miles Kvalheim Matt Varghese

2.  Do states that spend more money on education have less crime?

3.  Data is composed of total state crimes divided by the state population StateCrime Rate Index Alabama4.3% Alaska4.2 Arizona5.3 Arkansas4.6 California3.8 Colorado4.4 Connecticut2.8 Delaware3.8 District of Columbia5.9 Florida4.7 Georgia4.6 Hawaii5.1 Idaho3 Illinois3.7 Indiana3.8 Iowa3.1 Kansas4.2 Kentucky2.8 Louisiana4.3 Maine2.5 Maryland4.3 Massachusetts2.8 Maximum: District of Columbia 5.9% Minimum: South Dakota 1.9% Median: 3.8% Mean: 3.78%

4. State Elementary School and Secondary School Spending Per Capita College and University Spending Per Capita Alabama$1276$768 Alaska2608824 Arizona1166579 Arkansas1385615 California1708644 Colorado1483626 Connecticut1937558 Delaware1725927 District of Columbia2121174 Florida1312403 Georgia1553486 Hawaii1357691 Idaho1245600 Illinois1555588 Indiana1538677 Iowa1476854 Kansas1384831 Kentucky1187615 Louisiana1303527 Elementary and Secondary School Spending Per Capita Maximum: Alaska $2608 Minimum: Arizona $1166 Median: $1503 Mean: $1557 College and University Spending Per Capita Maximum: North Dakota $999 Minimum: District of Columbia $174 Median: $626 Mean: $652.5

5. State Income Per Capita Unemployment Rate 2004 High School Dropout Rates Alabama$291363.8%3.3% Alaska356126.97 Arizona302674.66.7 Arkansas268745.14.7 California370365.43.3 Colorado379465.15.4 Connecticut478194.91.8 Delaware3706546.1 District of Columbia549856.54 Florida332193.83.4 Georgia311215.25.4 Hawaii345392.74.8 Idaho281583.73.1 Illinois361205.85.3 Indiana312765.42.5 Iowa323154.32.1 Kansas328365.12.2 Kentucky285136.13.3 Louisiana248206.77.9 Maine312524.92.7 Maryland417604.1 Massachusetts442894.83.7 Michigan331166.84.6 Minnesota373734.23.2 Mississippi253187.82.9

6. ŷ = 1.23 -.0016x 1 +.00045x 2 + 6.27E-05x 3 +.32x 4 +.28x 5 Estimated Crime Rate For every increase of $10,000 in annual salary per income, the crime rate will increase by.627% For every increase of 1% in the unemployment rate, the crime rate will increase by.31% For every increase of 1% in the high school dropout rate, the crime rate will increase by.28% Coefficients Standard Errort StatP-value Intercept1.2318769921.3986104510.8807860.383114 Elementary School and Secondary School Spending Per Capita-0.0016215140.00055556-2.91870.005471 College and University Spending Per Capita0.000449480.0008511590.528080.600038 Income Per Capita6.26905E-053.27392E-051.9148420.061882 Unemployment Rate0.3152616160.1205150742.6159520.012069 High School Dropout Rates 20040.2818629050.0859034613.2811590.002002 For every additional $100 spent on elementary and secondary school education per capita, the crime rate will decrease by.16% For every additional $100 spent on college and university education per capita, the crime rate will increase by.045%

7. R Square =.37 37% of the variation in the state crime rate can be explained by education spending, average income, the unemployment rate, and the high school dropout rate. dfSSMSFSignificance F Regression517.534420993.5068845.2896280.000662364 Residual4529.83381430.662974 Total5047.36823529 The regression model as a whole is significant because the P-value of F is less than.05

8. The residuals seem to be slightly negatively skewed.

9. This scatter plot seems to be homoscedastic.

10. Crime Rates: http://www.disastercenter.com/crime/ Education Spending: http://nces.ed.gov/programs/digest/d07/tables/dt07_029.as p High School Dropout Rates: http://www.childtrendsdatabank.org/indicators/1HighSchool Dropout.cfm Unemployment Rates: http://www.bls.gov/lau/lastrk05.htm Incomes: http://www.infoplease.com/ipa/A0104652.html