Question

Is economic growth in the developing world related to growth in the industrialized? countries? The output of a regression analysis that related growth? (in % of Gross Domestic? Product) of the developing countries to the growth of developed countries from 1970 to 2007 is given below. Complete parts a through f. LOADING... Click the icon to view the regression analysis. ?

Dependent? variable: Growth Developing Countries
Rsquared2equals=20.8320.83?%
Variable	Coefficient
Intercept		3.593.59
Growth Developed Countries		0.405

a) Write the equation of the regression line. Choose the correct answer below. A. ModifyingAbove Growth left parenthesis Developed Countries right parenthesis with caretequals3.59plus0.405Growth ?(Developing Countries) B. ModifyingAbove Growth left parenthesis Developed Countries right parenthesis with caretequals0.405plus3.59Growth ?(Developing Countries) C. ModifyingAbove Growth left parenthesis Developing Countries right parenthesis with caretequals3.59plus0.405Growth ?(Developed Countries) Your answer is correct.D. ModifyingAbove Growth left parenthesis Developing Countries right parenthesis with caretequals0.405plus3.59Growth ?(Developed Countries) ?b) What is the meaning of the? intercept? A. The intercept is the predicted growth of developing countries in years of 0 growth in developed countries. Your answer is correct.B. The intercept is the predicted growth of developed countries in years of 0 growth in developing countries. C. The intercept is the predicted year in which the growth of the developed countries and the growth of the developing countries are the same. Does the intercept make sense in this? context? No Yes Your answer is correct. ?c) Interpret the meaning of the slope. Choose the correct answer below. A. GDP in developed countries increased 0.405?% more than in developing countries. B. GDP in developing countries increased 0.405?% more than in developed countries. C. GDP in developed countries increased 0.405?% for a? 1% increase in growth in developing countries. D. GDP in developing countries increased 0.405?% for a? 1% increase in growth in developed countries. Your answer is correct. ?d) In a year in which the developed countries grow? 4%, what do you predict for the developing? world? The predicted growth of the developing world is 5.21?%. ?(Round to three decimal places as? needed.) ?e) In? 2007, the developed countries experienced a 2.77?% ?growth, while the developing countries grew at a rate of 5.61?%. Is this more or less than you would have? predicted? More Your answer is correct. Less ?f) What is the residual for? 2007? The residual is nothing?%. ?(Round to two decimal places as? needed.)

Answer 1

Solution: Obtain the regression equation The fitted regression equation is, Growth Deve loping Countries)-3.59+0.405Growth(Developed Countries) Therefore, the correct option is option (C) Conclusion The intercept predicts the growth of the developing countries when the growth of the developed countries is for the year. Therefore, the correct option is option (A) Yes, the intercept makes sense in the given scenario. Conclusion

The slope of the regression equation is. That is, for a 1% increase in the growth of developed countries, the growth of the developing country increases by 0.405%. Therefore, the correct option is option (D) d. Obtain the predicted value. The predicted value is, Growth Developing Countries)-3.59+0.405x4 -5.21 Therefore, the required predicted value is 5.215 Obtain the predicted value. The predicted value is, Growth Developing Countries) 359+0.405x2.77 = 4.7119 Therefore, the required predicted value is 4.7119

Thus, 5.61% is more than 4.7119%. Thus, the correct answer is "More". Conclusion The residual is, Residual=y-y 5.61-47119 0.8981% 0.90% isit 413