2. Suppose we have the following data to study if a country's per capita income (measured in thousands of dollars) is a function of its R&D spending (measured as a percentage of GDP). country 1 2 3 4 xi yi 1 4 2 6 3 7 4 10 (1) Calculate beta hats with OLS. (2) Calculate R² and adjusted R².

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter19: The Macroeconomic Perspective
Section: Chapter Questions
Problem 25CTQ: Cross country comparisons of GDP per capita typically use purchasing power parity equivalent...
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2. Suppose we have the following data to study if a country's per capita income (measured in thousands of
dollars) is a function of its R&D spending (measured as a percentage of GDP). (
country
1
2
3
4
xi yi
1
4
2
6
3 7
4 10
(1) Calculate beta hats with OLS.
(2) Calculate R2 and adjusted R².
Transcribed Image Text:2. Suppose we have the following data to study if a country's per capita income (measured in thousands of dollars) is a function of its R&D spending (measured as a percentage of GDP). ( country 1 2 3 4 xi yi 1 4 2 6 3 7 4 10 (1) Calculate beta hats with OLS. (2) Calculate R2 and adjusted R².
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