Gross domestic product (diagnostics). In Chapter 18, Exercise 33 we found a model for GDP per Capita

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Gross domestic product (diagnostics). In Chapter 18, Exercise 33 we found a model for GDP per Capita from three country characteristics: Cell phones/100 people, Internet Users/100 people, and Primary Completion Rate. A look at leverage values and Cook’s Distance identifies three countries with high leverage (above 0.10) as Bahrain, Burkina Faso, and Israel and one country, Luxembourg, that stands as an outlier in Cook’s Distance.

Below are summary statistics for each variable in the model and the rows for those four countries.

Minimum Median Mean Maximum Std Dev IQR GDP Per Capita 128 3925 12486.271 74389 16141.658 21078.25 Cell phones/100 people 0.214 36.483 44.818 111.601 35.763 72.74 Internet Users/100 people 0.031 11.08 22.908 84.147 24.929 32.963 Primary Completion Rate -3.255 89.624 86.249 135.988 24.486 30.593 Bahrain Burkina Faso Israel Luxembourg GDP Per Capita 16726 351 18589 74389 Cell phones/100 people 96.7256163 2.87125874 111.60086 104.238747 Internet Users/100 people 21.4586805 0.40029529 21.6409437 64.84354 Primary Completion Rate 25.8616547 -3.2553808 88.5975782 73.0649076

a) Explain why each country was identified as a possible high inf luence point.

b) What might you consider doing next?

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Business Statistics

ISBN: 9781292269313

4th Global Edition

Authors: Norean Sharpe, Richard De Veaux, Paul Velleman

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