=+46. Health expenditures. 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):

Dependent variable is: Expenditures on Public Health R squared = 55.17%

s = 1.710 with 96 - 3 = 93 Term Estimate Std Error t-Ratio P-value Intercept 0.19941 0.95009 0.21 0.8342 Expected Years 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 60.0001

–4 Residuals Predicted Values 2

–2 0

2 4

6 4 6 8 M17_SHAR8696_03_SE_C17.indd 622 14/07/14 7:38 AM Exercises 623

–4

–2 0

Residuals Nscores

–2 –1 0 1 2 2

4 6