GDP 2013 The scatterplot shows the gross domestic product (GDP) of the United States in billions of (2013)

dollars plotted against years since 1950.

A linear model fit to the relationship looks like this:

a) Does the value 98.3% suggest that this is a good model? Explain.

b) Here’s a scatterplot of the residuals. Now do you think this is a good model for these data? Explain?

Clearly, the relationship is not linear. Can it be made nearly linear with a re-expression? If so, which one would you suggest? If not, why not?

GDP ($T) 16000 12000 8000 4000+ + 1950 1960 1970 1980 1990 2000 2010 Year