Suppose three countries’ per capita Gross Domestic Products (GDPs) are £1000, £2000, and £3000. What is the average of each pair of countries’ GDPs per capita? (b) What is the difference between each of the individual observations and the overall average? What is the sum of these differences? (c) Suppose instead of three countries, we had a sample of 100 countries with the same sample average GDP per capita as the overall average for the three observations above, with the standard deviation of these 100 observations being £1000. Form the 95% confidence interval for the population mean. (d) What might explain differences in GDP across countries? Consider the following regression equation, where Earnings is measured in £/hour, and Experience is measured in years in a particular job, with standard errors in parentheses: Earnings \ = −0.25 (−0.5) + 0.2 (0.1) Experience, One of these numbers has been reported incorrectly - it shouldn’t be negative. Which one and why? (b) Interpret the slope coefficient. (c) Can we reject the null hypothesis at the 5% level that the slope coefficient is equal to zero? (d) Form the 95% confidence interval for the slope coefficient. (e) Is your answer in (d) consistent with your answer in (c)? Explain.

1st Edition

ISBN:9781285187273

Author:Camm, Jeff.

Publisher:Camm, Jeff.

Chapter3: Data Visualization

Section: Chapter Questions

Problem 2P: The following table shows an example of gross domestic product values for five countries from 2005...

Related questions

Question

Suppose three countries’ per capita Gross Domestic Products (GDPs) are £1000, £2000, and £3000.

What is the average of each pair of countries’ GDPs per capita?
(b) What is the difference between each of the individual observations and the overall average? What is the sum of these differences?
(c) Suppose instead of three countries, we had a sample of 100 countries with the same sample average GDP per capita as the overall average for the three observations above, with the standard deviation of these 100 observations being £1000. Form the 95% confidence interval for the population mean.
(d) What might explain differences in GDP across countries?

Consider the following regression equation, where Earnings is measured in £/hour, and Experience is measured in years in a particular job, with standard errors in parentheses: Earnings \ = −0.25 (−0.5) + 0.2 (0.1) Experience,

One of these numbers has been reported incorrectly - it shouldn’t be negative. Which one and why?
(b) Interpret the slope coefficient.
(c) Can we reject the null hypothesis at the 5% level that the slope coefficient is equal to zero?
(d) Form the 95% confidence interval for the slope coefficient.
(e) Is your answer in (d) consistent with your answer in (c)? Explain.

Expert Solution