The Group of Eight (G8) consists of many of the major world economic powers. It meets annually to discuss pressing world problems. In 2013, for example, the G8 met in the United Kingdom with an agenda that included international security. Decisions made by G8 nations can have a global impact; in fact, the eight nations that make up the membership reportedly account for almost two-thirds of the world€™s economic output. Here are data for seven of the eight G8 nations for gross domestic product (GDP) in 2004 and a measure of education. The measure of education is the percentage of the population between the ages of 25 and 64 that had at least one university degree (Sherman, Honegger, & McGivern, 2003). No data point for education in Russia was available, so Russia is not included.

a. Create a scatterplot of these data, with university degree on the x-axis. Be sure to label everything and to give it a title. Later, we€™ll use statistical tools to determine the equation for the line of best fit. For now, draw a line of best fit that represents your best guess as to where it would go.

b. In your own words, describe the relation between the variables that you see in the scatterplot. 

c. Education is on the x-axis, indicating that education is the independent variable. Explain why it is possible that education predicts GDP. Now reverse your explanation of the direction of prediction, explaining why it is possible that GDP predicts education.

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Percentage with GDP (in trillions of $US) University Degree Country Canada 0.98 19 France 2.00 11 Germany 2.71 13 Italy 1.67 Japan 4.62 18 United Kingdom 2.14 17 United States 27 11.67