Question 2.10

2.10 Companies of the world

In Exercise 1.118 (page 61), you examined data collected by the World Bank on the numbers of companies that are incorporated and are listed in their country’s stock exchange at the end of the year for 2012. In Exercise 1.119, you did the same for the year 2002.3 In this exercise, you will examine the relationship between the numbers for these two years.

  1. Which variable would you choose as the explanatory variable, and which would you choose as the response variable. Give reasons for your answers.
  2. Make a scatterplot of the data.
  3. Describe the form, the direction, and the strength of the relationship.
  4. Are there any outliers? If yes, identify them by name.