The Internet has revolutionized business and offers unprecedented opportunities for globalization. However, the ability to access the Internet varies greatly among different regions of the world. One of the variables the United Nations collects data on each year is Personal Computers per 100 Population (unstats.un.org/unsd/cdb/cdb_help/cdb_quick_start.cdb/cdb_help/cdb_quick_start.asp) for various countries. Below is a scatterplot showing the regression line, 95% confidence intervals, and 95% prediction intervals ­using 2000 and 2012 computer adoption (personal computers per 100 population) for a sample of 85 countries. The response variable is PC/ 100 2012.

a) Working with the data set on the DVD with the same name as this exercise, find a regression model showing the relationship between personal computer adoption in 2012 PC/100 2012 (the response variable) and personal computer adoption in 2000 PC/100 2000 ( the predictor variable).
b) Explain the meaning of the 95% prediction intervals in this context.
c) Explain the meaning of the 95% confidence intervals in this context.

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