7.7

(a) For the data in Problem 7.1, find the estimated regression line and calculate the R2 statistic. Comment upon the result. How does it compare with Todaro’s findings?

(b) Calculate the standard error of the estimate and the standard errors of the coefficients. Is the slope coefficient significantly different from zero? Comment upon the result.

(c) Test the overall significance of the regression equation and comment.

(d) Taking your own results and Todaro’s, how confident do you feel that you understand the determinants of the birth rate?

(e) What do you think will be the result of estimating your equation using all 26 countries’ data? Try it! What do you conclude?