Construct a scatterplot of average annual growth rate

Assignment Help Microeconomics
Reference no: EM132201034

Question: On the text website: pearsonhighered, you will find the data file Growth, which contains data on average growth rates from 1960 through 1995 for 65 countries, along with variables that are potentially related to growth. A detailed description is given in Growth_Description, also available on the webstie. In this excercise, you will investigate the relationship between growth and trade.

a. Construct a scatterplot of average annual growth rate (Growth) on the average trade share (TradeShare). Does there appear to be a relationship between variables?

b. one country, malta, has a trade share much larger than the other countries. Find Malta on the scatterplot. Does malta look like an outlier?

c. using all observations, run a regression on Growth on TradeShare. What is the estimated slope? What is the Estimated intercept? Use the regression to predict the growth rate for a country with a trade share of .5 and with a trade share equal to 1.0.

d. Estimate the same regression, excluding the data from Malta. Answer the same questions in (c).

e. Plot the estimated regression functions from (c) and (d) using the scatterplot in (a),explain why the regression function that includes Malta is steeper than the regression function that excludes Malta.

f. Where is Malta? Why is the Malta trade share so large? Should Malta be included or excluded from the analysis?

Reference no: EM132201034

The weight of labrador retrievers is normally distributed

The weight of Labrador Retrievers is normally distributed with Mean 73 lbs and Standard Deviation 12 lbs. Shade in and calculate the probability that a randomly selected dog w

What texts analysis of inflation-unemployment cycle suggest

As the economy slipped into recession in 1980 and 1981, the Fed was under enormous pressure to adopt an expansionary monetary policy. Suppose it had begun an expansionary po

Ompare profit-maximizing strategies base on market structure

analyze the Learning Objective of, "Compare profit-maximizing strategies based on market structure". In your analysis please address two of the four market structures.

What would you use to estimate the audited value

A company sampled ten inventory items and obtained the audited and book values given in the accompanying table. Fit the model Y = β0 + β1x +ε to these data. What is your est

Fine company resources, capabilities, and core competencies

Assess the external threats affecting this corporation and the opportunities available to the corporation. Give your opinions on how the corporation should deal with the mos

What is countervailing duty

Explain the nature of the deadweight losses that occur from a tariff. What is countervailing duty, why is it needed, and how does it work. What is the difference between a sp

A country has a small share of the world import market

A country has a small share of the world import market for beef and has been importing the product under free trade conditions. This country's government now imposes a specifi

What is the real gdp

If the nominal GDP is $2 trillion in 1990 and $6 trillion in 2000, and if the GDP deflator is 300 in 1990 and 600 in 2000, then what is the real 2000 GDP in 1990 dollars?

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd