Question

The World Bank collected data on the percentage of GDP that a country spends on health expenditures ("Health expenditure," 2013) and also the percentage of women receiving prenatal care ("Pregnant woman receiving," 2013). The data for the countries where this information is available for the year 2011 are in table #10.1.8. Find the correlation coefficient and coefficient of determination and then interpret both. Table #10.1.8: Data of Health Expenditure versus Prenatal Care Health Expenditure (% of GDP) Prenatal Care (%) 9.6 47.9 3.7 54.6 5.2 93.7 5.2 84.7 10.0 100.0 4.7 42.5 4.8 96.4 6.0 77.1 5.4 58.3 4.8 95.4 4.1 78.0 6.0 93.3 9.5 93.3 6.8 93.7 6.1 89.8

Answer 1

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from above correlation coefficient =0.1715 ;

as it is posiitve and very small( close to 0) ; therefore this can be interpreted as there is a weak positive relationship between  Health Expenditure and Prenatal Care Health Expenditure

coefficient of determination =R² =(0.1715)² =0.0294

this can be interpretated as 2.94% variation in percentage of women receiving prenatal care can be explained by variation in  percentage of GDP that a country spends on health expenditures