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More misinterpretations
An economist investigated the association between a country's Literacy Rate and Gross Domestic Product (GDP) and used the association to draw the following conclusions. Explain why each statement is incorrect. (Assume that all the calculations were done properly.)
a) The Literacy Rate determines 64% of the GDP for a country.
b) The slope of the line shows that an increase of 5% in Literacy Rate will produce a $1 billion improvement in GDP.
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