3. Consider the following three (fictional) data points:Country Ultima Thule Narnia NeverlandGDP per capita (US $, 2021, in thousands) 10 30 20Deaths from COVID-19 as of Jan. 2023, millions 0.24 0.16 0.05(a) What is the slope of the line of best fit through these three points, whereDeaths from COVID-19 is the dependent variable and GDP per capita is theexplanatory variable? (b) The standard error for the slope parameter is 0.009. What does this standarderror measure? (c) Is the slope parameter statistically significant at the 5% level of significance?(The relevant critical value is not the usual value, but 4.303, due to the tinysample size). Explain what this means. (d) Why might this slope parameter be a misleading indicator of the relationshipbetween these two variables?
3. Consider the following three (fictional) data points:
Country Ultima Thule Narnia Neverland
GDP per capita (US $, 2021, in thousands) 10 30 20
Deaths from COVID-19 as of Jan. 2023, millions 0.24 0.16 0.05
(a) What is the slope of the line of best fit through these three points, where
Deaths from COVID-19 is the dependent variable and GDP per capita is the
explanatory variable?
(b) The standard error for the slope parameter is 0.009. What does this standard
error measure?
(c) Is the slope parameter statistically significant at the 5% level of significance?
(The relevant critical value is not the usual value, but 4.303, due to the tiny
sample size). Explain what this means.
(d) Why might this slope parameter be a misleading indicator of the relationship
between these two variables?
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