# Question

Is economic growth in Europe related to growth in the United States? Here’s a scatterplot of the average growth in 25 European countries (in % of Gross Domestic Product) vs. the growth in the United States. Each point represents one of the years from 1970 to 2011.

Dependent variable: European Countries GDP Growth

R2 =44.92%

s =1.352

Variable .......... Coefficient

Intercept ......... 0.693333

U.S. GDP Growth ..... 0.534

a) Check the assumptions and conditions for the linear model.

b) Explain the meaning of R2 in this context.

Dependent variable: European Countries GDP Growth

R2 =44.92%

s =1.352

Variable .......... Coefficient

Intercept ......... 0.693333

U.S. GDP Growth ..... 0.534

a) Check the assumptions and conditions for the linear model.

b) Explain the meaning of R2 in this context.

## Answer to relevant Questions

From the linear model fit to the data on GDP growth in Exercise 45: a) Write the equation of the regression line. b) What is the meaning of the intercept? Does it make sense in this context? c) Interpret the meaning of the ...As the nature of investing shifted in the 1990s (more day traders and faster flow of information using technology), the relationship between mutual fund monthly performance (Return) in percent and money flowing (Flow) into ...If you create a regression model for estimating a student’s business school GPA (on a scale of 1–5) based on his math SAT (on a scale of 200–800), is the slope most likely to be closer to 0.01, 1, or 10? Explain. The Worldwide Cost of Living Survey City Rankings determine the cost of living in the most expensive cities in the world as an index. This index scales New York City as 100 and expresses the cost of living in other cities as ...Indicate which of the following represent independent events. Explain briefly. a) The gender of customers using an ATM machine. b) The last digit of the social security numbers of students in a class. c) The scores you ...Post your question

0