Analysis of a set of data for 193 countries reported in the cross-country analysis by Bulled and Sosis (2010) revealed that the correlation between the adult literacy rate in a country and the life expectancy in the country was r = 0.70. (a) What is the adjusted r2 for predicting life expectancy from the literacy rate? (b) Explain what this adjusted r2 means for this set of data. (c) What, if any, is the causal relation suggested by this correlation and adjusted r2? Speculate on the nature of the causal relation underlying the correlation.

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Analysis of a set of data for 193 countries reported in the cross-country analysis by Bulled and Sosis (2010) revealed that the correlation between the adult literacy rate in a country and the life expectancy in
the country was r = 0.70. (a) What is the adjusted r2 for predicting life expectancy from the literacy rate?
(b) Explain what this adjusted r2 means for this set of data. (c) What, if any, is the causal relation
suggested by this correlation and adjusted r2? Speculate on the nature of the causal relation underlying the correlation.

 

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