Question 2.19

2.19 Time to start a business

Case 1.2 (page 23) uses the World Bank data on the time required to start a business in different countries. For Example 1.21 and several other examples that follow we used data for a subset of the countries for 2013. Data are also available for times to start in 2008. Let’s look at the data for all 189 countries to examine the relationship between the times to start in 2013 and the times to start in 2008.

  1. Why should you use the time for 2008 as the explanatory variable and the time for 2013 as the response variable?
  2. Make a scatterplot of the two variables.
  3. How many points are in your plot? Explain why there are not 189 points.
  4. Describe the form, direction, and strength of the relationship.
  5. Identify any outliers.
  6. Is the relationship approximately linear? Explain your answer.