Question 2.47

2.47 Predicted values for GDP and assets

Refer to the world financial markets data in Example 2.9.

  1. Use software to compute the coefficients of the regression equation. Indicate where to find the slope and the intercept on the output, and report these values.
  2. Make a scatterplot of the data with the least-squares line.
  3. Find the predicted value of assets for each country.
  4. Find the difference between the actual value and the predicted value for each country.

2.47

(a) . . (c) and (d)

Country Predicted Prediction Error
United Kingdom 169.927 29.0728
Australia 186.127 -20.1268
United States 188.377  2.6232
Singapore 152.828 15.1724
Canada 177.127 -7.127
Switzerland 276.125 81.8753
Netherlands 206.826 35.1737
Japan 146.528 29.4723
Denmark 254.525 -30.5252
France 179.827 -30.827
Germany 173.977 -28.9771
Belgium 184.777 -17.7768
Sweden 210.426 -41.4263
Spain 131.678 20.3219
Ireland 250.925 -36.9253

finmark