The Organization for Economic Cooperation and Development (OECD) tracks summary statistics of the member economies. The countries are located in
(a) In 2005, Luxembourg reported the highest positive balance of trade, 21.5% of GDP and per capita GDP equal to $70,000. Fit the least squares equation both with and without Luxembourg and compare the results. Does the fitted slope change by very much?
(b) Explain any differences between r2 and se for the two fits considered in part (a).
(c) Luxembourg also has the second smallest population among the countries. Does this explain the size of the difference between the two equations in part (a)? Explain.
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Question Posted: July 14, 2015 09:47:11