<Student’s name>
<University>
As I may see, the question was asked by your teacher, who checked your essay about the impact of education on crime. The purpose of this question is to ask you to use some concrete data about the annual amount of crimes and annual graduation rate in your area.
First of all you have to determine all the coefficients in your linear model. The general linear equation has a form (http://en.wikipedia.org/wiki/Simple_linear_regression):
y=a+bx
where a and b are coefficients of the regression, x is your predictor and y is a response variable.
You may have some data set with statistics about the annual amount of crimes and relative graduation rate. After all necessary procedures (so-called “Least-squares method”) you will obtain this equation with known parameters a and b.
In your case, parameter a corresponds to your B0 (constant) and b corresponds to -100 000. Your y is C and your x is B1.
All that I want say is that you didn’t determine your B0 – it must be known value. And that’s why:
For example, you have found that in your state, the national graduation rate is 90%. Now you have to substitute a known value of B1 into your formula and obtain a corresponding value of annual amount of crimes:
C=B0-100000∙90=B0-900000
But you can’t find C due to a lack of B0 value. And your teacher asked you exactly about this.
Recommendation
All that you need is just find this information relatively to your city, state or country and then construct a linear regression where B0 will be determined. Then, you must take some value of x (B1 in your case) and calculate the corresponding y value (C in your case).
That is all that your teacher wanted – to use your linear regression in practical calculations.
If you will find the data, we can discuss the possibility of building a linear regression by my own.
Thank you.
