The scatterplot shows the gross domestic product (GDP) of the United States in billions of (2013) dollars plotted against years since 1950.

A linear model fit to the relationship looks like this:
Dependent variable is: GDP
R-squared = 98.3% s = 553.2
Variable Coefficient
Intercept €¦€¦€¦€¦€¦€¦.. 2058.981
Year-1950 €¦€¦€¦€¦€¦€¦ 227.176
a) Does the value 98.3% suggest that this is a good model? Explain.
b) Here's a scatterplot of the residuals. Now do you think this is a good model for these data? Explain?

Transcribed Image Text:

16000ナ 12000 8000t 4000十 50 1960 1970 1800 2000 2010 Year 1000 500 + 500 -1000t 2000 4000 6000 8000 10000 12000 14000 16000 Predicted Values