Plot a scatter diagram using GDP per capita as the X variable and life expectancy as the Y...

Plot a scatter diagram using GDP per capita as the X variable and life expectancy as the Y variable from the table in Problem 12.4.

(a) Fit a straight line to the plot of X = GDP and Y = LifeExp. Describe how the straight line fits the data.

(b) Compute r.

(c) Take the logarithm of X = GDP and repeat the steps in (a) and (b) using log(GDP) as the X variable.

(d) Explain why there is an increase in T when the logarithm of X is taken.

Problem 12.4

The following table contains data from 17 countries. These countries are a systematic sample from twice this number of countries that had a population > 30 million people in 1998 and had complete data. The data were taken from the US. Bureau of the Census, Statistical Abstracts of the United States; 1998, 118th ed., Washington, DC. It consists of the crude birth rate (CBR) or the total number of births divided by the total population in 1998, life expectancy (LifeExp) from birth in years for the overall population, and gross domestic product (GDP) per capita for 1995. The GDP has been adjusted and then converted to U.S. dollars.

(a) State which model the data in the table follows.

(b) Plot the scatter diagram when X = life expectancy and Y = crude birth rate and fit a regression line.

(c) Does the data appear to follow a straight line?

(d) If life expectancy increased by 10 years, what do you expect to happen to the crude birth rate?

(e) Test that H_{o} : β = 0. If you test that p = 0, will you get the same P value?