q12 (12K)Q12 Part V: Linear Regression • Name:

Duration of colonial admin versus GDP
LocationYears of colonization
(years)		Per capita gross domestic product
(dollars)
Majuro1001896
Moen871335
Nauru782702
Palau1206076
Pohnpei1012711
Tarawa66538

The data in this section comes from a report on years of colonization of Pacific island states and their present per capita gross domestic product (GDP). From the Wikipedia: "A region's gross domestic product, or GDP, is one of the several measures of the size of its economy. The GDP of a country is defined as the market value of all final goods and services produced within a country in a given period of time. It is also considered the sum of value added at every stage of production of all final goods and services produced within a country in a given period of time."

  1. _________ Calculate the slope of the best fit (least squares) line.
  2. _________ Calculate the y-intercept of the best fit (least squares) line.
  3. _________ Is the correlation positive, negative, or neutral?
  4. _________ Use the equation of the best fit line to calculate the predicted GDP for a country colonized for 95 years.
  5. _________ Use the inverse of the best fit line to calculate the predicted years of colonization for a GDP of $4500.
  6. _________ Calculate the linear correlation coefficient r for the data.
  7. _________ Is the correlation none, low, moderate, high, or perfect?
  8. _________ Calculate the coefficient of determination.
  9. _________ What percent of the variation in the years of colonization explains the variation in the GDP?
  10. _________ What is the predicted GDP for a nation with zero years of colonization?
  11. _________ What is the years of colonization predicted for a GDP of zero dollars?
Linear Regression Statistics
Statistic or ParameterSymbolEquationsOpenOffice
Slopeb=SLOPE(y data; x data)
Intercepta=INTERCEPT(y data; x data)
Correlationr=CORREL(y data; x data)
Coefficient of Determinationr2  =(CORREL(y data; x data))^2