Can the amount of money that a country spends on health (as % of GDP) be predicted by other economic indicators? Here’s a regression predicting Expenditures on Public Health (as % of GDP) from Expected Years of Schooling and Internet Users (per 100 people):
a) Write the regression model.
b) Are the assumptions and conditions met?
c) State and test the standard null hypothesis for the coefficient of Expected Years of Schooling. Use the standard a-level of α = 0.05 and state your conclusion.
d) Does the coefficient of Internet Users/100 people mean that when Internet use increases, the expenditures on public health will increase as well?