Is economic growth in the developing world related to growth in the industrialized countries? Here?s a scatterplot of the growth (in % of Gross Domestic Product) of the least developed countries (as classified by the UN) vs. the growth of the 19 European states. Each point represents one of the years from 1983 to 2016. The output of a regression analysis follows.

a) Check the assumptions and conditions for the linear model.

b) Explain the meaning of R² in this context.

c) What are the cases in this model?

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Dependent variable: GDP Growth Least Developed Countries R? = 0.002% s = 2.462 Variable Intercept GDP Growth Euro Area Coefficient 4.340 -0.066