Opting to center my analysis on household incomes and poverty rates as external factors, my objective was to uncover their correlation with crime rates across various areas. Beginning with an exploration of household incomes, the dataset columns include district, median income, total households, and percentage distributions across income brackets, spanning from $14,999 and under to $150,000 and above. In the context of our analysis, the focus was particularly on the median income of that area.
To investigate the correlation between median household income and crime rates in various areas, I initially had to extract crime rates from the first dataset and manually mapped of districts and district codes in both datasets for effective merging. Subsequently, I calculated the correlation coefficient for median income and crime rates in each specific area, yielding the following result and interpretation:
Coefficient: -0.598716
Interpretation:
-
- The negative correlation coefficient suggests an inverse relationship between median income and crime rate.
- As median income increases, the crime rate tends to decrease, and conversely, as median income decreases, the crime rate tends to increase.
- The proximity of the coefficient to -1 indicates a stronger negative correlation.
Upon visualizing the trend, a clear pattern emerged, illustrating that areas with higher incomes consistently exhibit lower crime rates.
