GDP growth, part 2. From the linear model fit to the data on GDP growth in Exercise 45.
a) Write the equation of the regression line.
b) What is the meaning of the intercept? Does it make sense in this context?
c) Interpret the meaning of the slope.
d) In a year in which the developed countries grow 4%, what do you predict for the developing world?
e) In 2007, the developed countries experienced a 2.65% growth, while the developing countries grew at a rate of 6.09%. Is this more or less than you would have predicted?
f) What is the residual for this year?