OECD GDP. The Organization for Economic Cooperation and Development (OECD) is an organization comprised of thirty countries. To belong, a country must support the principles of representative democracy and a free market economy. How have these countries grown in the decade from 1988 to 1998–2000? Here are the GDP per capita for 24 of the OECD members (in year 2000 dollars).

(http://www.sba.gov/advo/research/rs264tot.pdf)

Make a model of 1998–2000 GDP/Capita in terms of 1988 GDP/Capita. Plot the residuals and discuss any concerns you may have.

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Country 1988 GDP/Capita 1998-2000 GDP/Capita Australia 18,558 23,713 Austria 25,626 31,192 Belgium 24,204 30,506 Canada 19,349 22,605 Denmark 31,517 38,136 Finland 25,682 31,246 France 24,663 29,744 Germany 27,196 32,256 Greece 10,606 13,181 Ireland 13,050 27,282 Italy 17,339 20,710 Japan 36,301 44,154 Korea 7038 12,844 Mexico 3024 3685 Netherlands 23,159 30,720 New Zealand 15,480 17,979 Norway 28,241 37,934 Portugal 8935 12,756 Spain 12,879 17,197 Sweden 26,634 30,873 Switzerland 43,375 46,330 Turkey 2457 2947 United Kingdom 17,676 22,153 United States 25,324 31,296