Question: HDI 2012 revisited The United Nations Development Programme (UNDP) uses the Human Development Index (HDI) in an attempt to summarize in one number the progress

HDI 2012 revisited The United Nations Development Programme

(UNDP) uses the Human Development Index (HDI) in an attempt to summarize in one number the progress in health, education, and economics of a country. The number of Internet users per 100 people is positively associated with economic progress in a country.

Can the number of Internet users be used to predict the HDI? Here is a scatterplot of HDI against Internet users:

HDI 0.9 0.8- 0.7+ HO 0.6 0.5 0.4+ 0.3+ + 0 20

a) Explain why fitting a linear model to these data might be misleading.

b) If you fit a linear model to the data, what do you think a scatterplot of residuals vs. predicted HDI will look like?

HDI 0.9 0.8- 0.7+ HO 0.6 0.5 0.4+ 0.3+ + 0 20 40 60 80 Internet Users Per 100 Population

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