Chapter 11.1, Problem 4P

Debt: Developing Countries Borrowing money may be necessary for business expansion. However, too much borrowed money can also mean trouble. Are developing countries tending to borrow more? A random sample of 20 developing countries gave the following information regarding foreign debt per capita (in U.S. dollars, inflation adjusted) (Reference: Handbook of International Economic Statistics, U.S. Government Documents).

Does this information indicate that foreign debt per capita is increasing in developing countries? Use a 1% level of significance.