À researcher wants to investigate the relationship between freedom and economic growth and downloads the following 2018 data for 20 countries: Country Argentina Bangladesh Belarus Belgium Benin Bolivia Italy Jamaica Index of Civil Liberties GDP pc growth .03 .82 .50 .23 .07 .03 .01 .86 .59 .67 .04 .01 .82 .01 .85 32 .01 .03 .04 .06 .02 .00 .05 .03 01 Kazakhstan Kenya Myanmar .44 21 Netherlands .91 New Zealand Nicaragua Niger Nigeria 1 .41 .47 44 United States .82 .09 27 .02 Uzbekistan Vietnam Zambia .04 .06 .65 .01 A higher index of civil liberties indicates a higher degree of freedom. (a) Write down the regression of GDP growth as a function of civil liberties. (b) Estimate the intercept and the slope of the linear model. Show your workings. (c) The standard error for the slope is 0.0238. Is the slope of the regression significantly different from zero at 10%? At 5%? Show your workings.

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A researcher wants to investigate the relationship between freedom and economic growth
and downloads the following 2018 data for 20 countries:
Country Index of Civil Liberties GDP pc growth
Argentina
Bangladesh
Belarus
.82
-.03
.07
.50
.23
.03
Belgium
Benin
Bolivia
Italy
Jamaica
Kazakhstan
Kenya
Myanmar
Netherlands
.86
.59
.67
.82
.01
.04
-.01
.01
.85
.01
.32
.44
.03
.04
.06
.02
21
.91
New Zealand
Nicaragua
Niger
Nigeria
United States
Uzbekistan
Vietnam
1
.00
-.05
.41
.47
.03
.44
-.01
.82
.02
.09
.04
.27
.06
Zambia
.65
.01
A higher index of civil liberties indicates a higher degree of freedom.
(a) Write down the regression of GDP growth as a function of civil liberties.
(b) Estimate the intercept and the slope of the linear model. Show your workings.
(c) The standard error for the slope is 0.0238. Is the slope of the regression significantly
different from zero at 10%? At 5%?
Show your workings.
Transcribed Image Text:A researcher wants to investigate the relationship between freedom and economic growth and downloads the following 2018 data for 20 countries: Country Index of Civil Liberties GDP pc growth Argentina Bangladesh Belarus .82 -.03 .07 .50 .23 .03 Belgium Benin Bolivia Italy Jamaica Kazakhstan Kenya Myanmar Netherlands .86 .59 .67 .82 .01 .04 -.01 .01 .85 .01 .32 .44 .03 .04 .06 .02 21 .91 New Zealand Nicaragua Niger Nigeria United States Uzbekistan Vietnam 1 .00 -.05 .41 .47 .03 .44 -.01 .82 .02 .09 .04 .27 .06 Zambia .65 .01 A higher index of civil liberties indicates a higher degree of freedom. (a) Write down the regression of GDP growth as a function of civil liberties. (b) Estimate the intercept and the slope of the linear model. Show your workings. (c) The standard error for the slope is 0.0238. Is the slope of the regression significantly different from zero at 10%? At 5%? Show your workings.
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