Question: (c) Comment on your results 03. The data below shows the number of countries 00 in which a firm that Lendright is con- sidering

(c) Comment on your results 03. The data below shows the number of countries 00 in which a firm that Lendright is con- sidering funding has been active over the past 15 years and the average profitability (Y in Em) per country. 4 5 6 12 13 13 16 16 17 17 18 19 20 22 24 Y (Em) 47 111 124 240 211 205 276 305 309 302 259 334 302 371 241 (a) Find the line of best fit feast squares line) relating average profitability () to the number of countries in which the firm operates p (b) What do your results suggest? 04. The data shows the budget deficit (public expenditure minus tax revenue) as a percentage of national income for nine countries and the market value of their CDS in 2012, expressed as a percentage. We noted above that the higher the percentage CDS for a country, the greater the market perception of risk from lending to that country. Budget deficit as a percentage of national Country France CDS as a percentage Income 1.9 5.9 Germany 1.0 2.1 Greece 60.0 9.8 Ireland 8.6 102 Italy 5.1 3.9 Portugal 12.1 5.8 Spain 3.9 63 UK 0.9 8.1 US 0.5 10.1 (a) Find the line of best fit relating a country's CDS value (Y) to its budget deficit (X). (b) What do your results suggest? Note: Answers to Self-Check Questions can be found on the instructor's website, www.parsened co

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