Question

Carbon dioxide

CO

2

is produced by burning fossil fuels such as oil and natural gas, and has been connected to global warming. The following table presents the average amounts (in metric tons) of

CO

2

emissions for certain years per person in the United States and per person in the rest of the world. Use a TI-84 calculator to answer the following.

Year	Non-U.S.	U.S.
1990	3.6	19.2
1991	3.6	19.0
1992	3.5	18.8
1993	3.3	19.7
1994	3.3	19.8
1995	3.3	19.5
1996	3.4	19.7
2000	3.3	20.0
2001	3.3	19.6
2006	3.7	19.0

(b) If the non-U.S. emissions differ by 0.2 from one year to the next, by how much would you predict the U.S. emissions to differ? Round your answer to four decimal places.

The U.S. emissions would differ _____ metric tons.

Answer 1

It is a panel data.

lets take the difference and then do regression analysis on difference of two years

the model is

(US_t+1 - US_t ) = b0 +b1x ( nonUS_t+1 - nonUS_t )

US_t+1 - US_t	nonUS_t+1 - nonUS_t
0	-0.2
-0.1	-0.2
-0.2	0.9
0	0.1
0	-0.3
0.1	0.2
-0.1	0.3
0	-0.4
0.4	-0.6

The regression analysis results in Excel is

(US_t+1 - US_t ) =0.005571 - 0.24932x ( nonUS_t+1 - nonUS_t )

for ( nonUS_t+1 - nonUS_t ) = 0.2

(US_t+1 - US_t ) =0.005571 - 0.24932x 0.2

= -0.044293