The scatterplot shows the gross domestic product (GDP) of the United States in trillions of (2010) dollars plotted against years since 1960. (Data in GDP and DJIA 2017)

A linear model fit to the relationship looks like this: (We?ve included much of the regression table as you?d see it from a statistics program.)

a) Does the value 98.0% suggest that this is a good model? Explain.

b) Here?s a scatterplot of the residuals. Now do you think this is a good model for these data? Explain?

Transcribed Image Text:

Response variable is: GDP($T) R squared = 98.0% R squared (adjusted) = 98.0% s = 0.6088 with 57 - 2 = 55 degrees of freedom Variable Coefficient SE(Coeff) t-ratio P-value Intercept -500.348 9.744 0.0049 -51.4 52.3 <0.0001 0.256307 Year <0.0001