Does the data appear to follow a straight line

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Plot a scatter diagram using GDP per capita as the X variable and life expectancy as the Y variable from the table in given Problem.

(a) Fit a straight line to the plot of X = GDP and Y = LifeExp. Describe how the straight line fits the data.

(b) Compute r.

(c) Take the logarithm of X = GDP and repeat the steps in (a) and (b) using log(GDP) as the X variable.

(d) Explain why there is an increase in T when the logarithm of X is taken.

Problem
The following table contains data from 17 countries. These countries are a systematic sample from twice this number of countries that had a population > 30 million people in 1998 and had complete data. The data were taken from the US. Bureau of the Census, Statistical Abstracts of the United States; 1998, 118th ed., Washington, DC. It consists of the crude birth rate (CBR) or the total number of births divided by the total population in 1998, life expectancy (LifeExp) from birth in years for the overall population, and gross domestic product (GDP) per capita for 1995. The GDP has been adjusted and then converted to U.S. dollars.

Country                CBR       LifeExp      GDP

Argentina            20        74.5          7,909

Brazil                  20.9     64.4          4,080

Canada               12.1     79.2          19,000

Colombia             24.9     70.1          2,107

Egypt                 27.3     62.1          746

France               11.7      78.5          26,290

India                  25.9      62.9          348

Iran                   31.4      68.3          2,449

Japan                 10.3      80.0          41,160

Mexico               25.5       71.6          2,521

Pakistan             34.4       59.1          482

Poland               9.8         72.8          5,404

S. Africa            26.4        55.7          3,185

Tanzania            40.8        46.4          134

Thailand             16.8        69.0          2,806 

United Kindgom    12.0        77.2          19,020

United States      14.4        76.1          27,550

(a) State which model the data in the table follows.

(b) Plot the scatter diagram when X = life expectancy and Y = crude birth rate and fit a regression line.

(c) Does the data appear to follow a straight line?

(d) If life expectancy increased by 10 years, what do you expect to happen to the crude birth rate?

(e) Test that Ho : β = 0. If you test that p = 0, will you get the same P value?

Reference no: EM131397020

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