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FortisBC Inc. (FortisBC) Application for a Certificate of Public ...

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Appendix E<br />

The regression underlies the remarks in the text.<br />

It is a regression <strong>of</strong> sentenced days in jail on prior<br />

<strong>of</strong>fences and the value <strong>of</strong> the grow-op as estimated<br />

by the police. The coefficient on PRIORS<br />

tells us the effect <strong>of</strong> a change in the number <strong>of</strong><br />

prior <strong>of</strong>fences on the length <strong>of</strong> sentence. On average,<br />

an additional prior <strong>of</strong>fence adds about 3.58<br />

days to the sentence. The number <strong>of</strong> priors runs<br />

from 0 to 25 so in the extreme, priors may add 90<br />

days to a sentence. Looking at the coefficient on<br />

the value <strong>of</strong> grow-ops (measured in units <strong>of</strong><br />

$100,000 as reported by police), an increase <strong>of</strong><br />

$100,000 implies an increase <strong>of</strong> about 16 days in<br />

Dependent Variable: SENDAYS<br />

<strong>Inc</strong>luded observations: 111<br />

PUBLIC POLICY SOURCES, NUMBER 74<br />

Appendix BCUC IR1 74.1<br />

sentenced jail time. Since the estimated value <strong>of</strong><br />

the marijuana grow operations runs between<br />

$75,000 and $3.6 million, the effect on sentencing<br />

can be substantial. At the extreme, the value can<br />

add 540 days to the jail sentence.<br />

Also <strong>of</strong> interest is the adjusted R 2 that indicates<br />

that about 16 percent <strong>of</strong> the variance <strong>of</strong> days sentenced<br />

can be explained by the two variables in<br />

the regression. This is the basis <strong>for</strong> the remarks in<br />

the text suggesting that there is much left to explain:<br />

84 percent, to be precise.<br />

Variable Coefficient Std. Error t-Statistic Prob.<br />

C -8.85 15.8 -0.56 0.58<br />

PRIORS 3.58 1.79 1.99 0.05<br />

VALUE/100000 16.2 4.09 3.97 0.00<br />

R-squared 0.17 Mean dependent var 52.1<br />

Adjusted R-squared 0.16 S.D. dependent var 101.<br />

S.E. <strong>of</strong> regression 93.1 F-statistic 11.2<br />

Log likelihood -659. Prob(F-statistic) 0.00<br />

The Fraser Institute 39 Marijuana Growth in British Columbia

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