Investigating the Correlation Between Median Housing Prices and Crime Rates in Melbourne Suburbs

This investigation explores the relationship between median housing prices and crime rates across various suburbs in Melbourne, Australia, testing the hypothesis that wealthier areas experience lower crime.

The author employs stratified random sampling based on distance from the CBD, utilizing Pearson’s correlation coefficient, linear regression, and a Yates-corrected Chi-square test to analyze the data.

Findings reveal a moderate positive correlation (r = 0.566), suggesting that higher housing prices are associated with increased crime rates, potentially due to opportunistic targets in affluent hubs.

The paper is distinguished by its rigorous statistical approach, including a detailed analysis of the coefficient of determination and a quantitative assessment of predictive reliability using average percentage error.