Assignment:
YEAR GNP ln(gnp)
1975 1060 6.966024187
1976 1170 7.064759028
1977 1305 7.17395832
1978 1455 7.28276118
1979 1630 7.396335294
1980 1800 7.495541944
1981 2000 7.60090246
1982 2220 7.705262475
1983 2450 7.803843304
1984 2730 7.912056888
The US BNP during the years 1975-1984 is given in the above table.
a. Plot x = years after 1974 against GNP, and use the plot to describe how to fit a curve that could be used to predict GNP during future years.
b. When the regression on transformed data is done, we find the B=6.86 and B1=0.105. What is the prediction for 1985 GNP?
Provide complete and step by step solution for the question and show calculations and use formulas.