Question: A study used historical data to model the GDP per capita of 24 countries. One analysis estimated the effect on GDP of economic regulations, using



A study used historical data to model the GDP per capita of 24 countries. One analysis estimated the effect on GDP of economic regulations, using an index of the degree of economic regulation and other variables. They found the regression model in the accompanying table. All tstatistics on the individual coefcients have P-values 0.22). Reconsider your interpretation in part a. O A. The coefficient of GDP/Capita (10 years prior) is actually a predictor of Economic Regulation Index. 0 B. The interpretation in part a is not valid. Since Economic Regulation Index does not signicantly contribute to this model, it is not reasonable to claim a relationship to GDP/Capita. O C. The coeicient of the Economic Regulation Index is actually a predictor of GDP / Capita (10 years prior). 0 D. The interpretation in part a is valid. Allowing for GDP/Capita (10 years prior), the other variables signicantly contribute to the model; without allowing for GDP / Capita (10 years prior), the other predictors do not. _..--"""-"""'--.._ GDP/ Capita = 10995 - 1373 Economic Regulation Index + 1.022 GDP! Capita (10 years prior) - 71.61 Ethno-linguistic Diversity Index +44.09 Trade as share of GDP - 58.16 Primary Education (% Eligible Population)
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