Chapter 10, Problem 13E

To determine

To Explain: that it is better model for GDP or not.

Answer to Problem 13E

Yes

Explanation of Solution

Given:

  

  

By seeing the figure, it is observed that it shows the GDP of US. Here is given the value of GDP with the log. It will give the much better model than the previous one. There is still some pattern in the residual figure which is slightly curved but it is a weaker pattern than the previous model.