Scientists believe that a major cause of global warming is higher levels of carbon dioxide (C02) in the atmosphere. In the Journal of World-Systems Research (Summer 2003), sociologists examined the impact of foreign investment dependence on C02 emissions in n = 66 developing countries. In particular, the researchers modeled the level of C02 emissions in 1996 based on foreign investments made 16 years earlier and several other independent variables. The variables and the model results are listed in the table below.
a.Interpret the value of R2.
b.Use the value of R2 to test the null hypothesis. H0: β1 = β2 = €¢ €¢ €¢ = β7 = 0, at a = .01.

c. What null hypothesis would you test to determine if foreign investments in 1980 is a statistically useful predictor of C02 emissions in 1996?
d. Conduct the test, part c, at α = .05.

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y-n(level of CO2 emissions in 1996) B Estimate t-value p-value x1 = ln(foreign investments in 1980) x gross domestic investment in 1980 x) = trade exports in 1980 K4 In(GNP in 1980) as agricultural production in 1980 x, 1 if African country, 0 if not 2.52 .13 1.66 97 .66 s 05 .10 10 10 10 .10 .001 79 01 -.02 -44 -.03 -In level of CO2 emissions in 1980) 56 3.35