53. Many countries, especially those in Europe, have significant gold holdings. But, many of these countries also have massive debts. The following data show the total value of gold holdings in billions of U.S. dollars and the debt as a percentage of the gross domestic prod- uct for nine countries (WordPress and Trading Economics websites, February 24, 2012). Gold Value ($ billions) Debt Country (% of GDP) China France 63 17.7 81.7 83.2 69.2 Germany Indonesia Italy 146 203 33 147 36 50 119.0 Netherlands 63.7 9.9 Russia Switzerland United States 62 487 55.0 93.2 Using the entire data set, develop the estimated regression equation that can be used to predict the debt of a country given the total value of its gold holdings. d. Use residual analysis to determine whether any outliers or influential observations are present. e. Suppose that after looking at the scatter diagram in part (a) that you were able to visually identify what appears to be an influential observation. Drop this observation from the data set and fit an estimated regression equation to the remaining data. Com- pare the estimated slope for the new estimated regression equation to the estimated slope obtained in part (c). Does this approach confirm the conclusion you reached in part (d)? Explain.
53. Many countries, especially those in Europe, have significant gold holdings. But, many of these countries also have massive debts. The following data show the total value of gold holdings in billions of U.S. dollars and the debt as a percentage of the gross domestic prod- uct for nine countries (WordPress and Trading Economics websites, February 24, 2012). Gold Value ($ billions) Debt Country (% of GDP) China France 63 17.7 81.7 83.2 69.2 Germany Indonesia Italy 146 203 33 147 36 50 119.0 Netherlands 63.7 9.9 Russia Switzerland United States 62 487 55.0 93.2 Using the entire data set, develop the estimated regression equation that can be used to predict the debt of a country given the total value of its gold holdings. d. Use residual analysis to determine whether any outliers or influential observations are present. e. Suppose that after looking at the scatter diagram in part (a) that you were able to visually identify what appears to be an influential observation. Drop this observation from the data set and fit an estimated regression equation to the remaining data. Com- pare the estimated slope for the new estimated regression equation to the estimated slope obtained in part (c). Does this approach confirm the conclusion you reached in part (d)? Explain.
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
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Transcribed Image Text:53. Many countries, especially those in Europe, have significant gold holdings. But, many of
these countries also have massive debts. The following data show the total value of gold
holdings in billions of U.S. dollars and the debt as a percentage of the gross domestic prod-
uct for nine countries (WordPress and Trading Economics websites, February 24, 2012).
Gold
Value
Debt
Country
($ billions)
(% of GDP)
China
63
17.7
DATA file
France
146
81.7
Germany
Indonesia
Italy
Netherlands
203
83.2
GoldHoldings
33
69.2
147
119.0
36
63.7
Russia
50
9.9
Switzerland
62
55.0
United States
487
93.2
Using the entire data set, develop the estimated regression equation that can be used
to predict the debt of a country given the total value of its gold holdings.
d. Use residual analysis to determine whether any outliers or influential observations are
C.
present.
Suppose that after looking at the scatter diagram in part (a) that you were able to
visually identify what appears to be an influential observation. Drop this observation
from the data set and fit an estimated regression equation to the remaining data. Com-
pare the estimated slope for the new estimated regression equation to the estimated
slope obtained in part (c). Does this approach confirm the conclusion you reached in
part (d)? Explain.
e.
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