Question

The GDP per capita in 1988 and? 1998-2000 for 12 countries? (both in year 2000?dollars) is shown in the accompanying table. Make a model of? 1998-2000 GDP/Capita in terms of 1988? GDP/Capita. Plot the residuals and discuss any concerns you may have.

Country	1988? GDP/Capita		?1998-2000 GDP/Capita
A	26,634		30,873
B	25,682		31,246
C	18,558		23,713
D	25,324		31,296
E	31,517		38,136
F	36,301		42,154
G	23,159		29,720
H	24,241		42,934
I	43,375		46,330
J	19,349		22,605
K	13,050		20,282
L	12,879		17,197 A) What is the regression equation? B) What is the value of R squared? C) Find the standard deviation of the residuals, se/

Answer 1

a) From the given data

	X	Y	(Xi-Xbar)^2	(Yi-Ybar)^2	(xi-xbar)(yi-ybar)
1	26634	30873	2651198.06	250834.03	-815481.875
2	25682	31246	457314.063	16341.361	-86447.29167
3	18558	23713	41573480.1	58688367	49395138.13
4	25324	31296	101283.063	6058.0278	-24770.45833
5	31517	38136	42396376.6	45726898	44030157.71
6	36301	42154	127582673	116211993	121764677.5
7	23159	29720	3410485.56	2735164.7	3054216.708
8	24241	42934	584842.563	133637453	-8840637.458
9	43375	46330	337429346	223686921	274733564.5
10	19349	22605	31998820.6	76892438	49603097.96
11	13050	20282	142939958	123028767	132611186.4
12	12879	17197	147058066	200982603	171918913.6
Total =	300069	376486	878183842	981863840	837343615.5