Can the amount of money that a country spends on health (as % of GDP) be predicted by other economic indicators? Here€™s a regression predicting Expenditures on Public Health (as % of GDP) from Expected Years of Schooling and Internet Users (per 100 people):

a) Write the regression model.
b) Are the assumptions and conditions met?
c) State and test the standard null hypothesis for the coefficient of Expected Years of Schooling. Use the standard a-level of α = 0.05 and state your conclusion.
d) Does the coefficient of Internet Users/100 people mean that when Internet use increases, the expenditures on public health will increase as well?

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Dependent variable is: Expenditures on Public Heaith R squared = 55.17% s = 1.710 with 96-3 = 93 Term Intercept Expected Years Estimate Std Error t-Ratio P-value 0.19941 0.95009 0.21 0.8342 of Schooling of children) years) 0.23244 0.08259 2.81 0.006 Internet Users Per 100 People (2004) 0.05142 0.01031 4.99 <0.0001 Predicted Values -4 21 2 Nscores