1.) Along with this homework exercise a data set has been posted, Homework1.Regression.xlsx. This file contains development data for many countries around the world. The columns in the files are as follows

Y Annual percentage growth rate of GDP

X1 Improved water source (% of population with access)

Access to an improved water source refers to the percentage of the population using an improved drinking water source.

X2 Improved sanitation facilities (% of population with access)

Access to improved sanitation facilities refers to the percentage of the population using improved sanitation facilities.

X3 Access to electricity (% of population) Access to electricity is the percentage of population with access to electricity.

X4 Renewable energy consumption (% of total final energy consumption) Renewable energy consumption is the share of renewables energy in total final energy

consumption.

X5 CO2 emissions (metric tons per capita) Carbon dioxide emissions are those stemming from the burning of fossil fuels and the

manufacture of cement.

X6 Internet users (per 100 people) Internet users are individuals who have used the Internet (from any location) in the last

12 months

(a) Using the data set Homework1.Regression.xlsx, please run a regression with Annual Percentage Growth rate of GDP as the dependent (Y) variable and all other variables are the independent (X) variables - X1, X2, X3, X4, X5, X6. The definitions of all the X variables are given above. Please copy and paste your Excel output into your word document and do not submit your Excel file.

(b) What can you say about the goodness of fit of the equation? Explain.

(c) Based on the definitions of the variables as given above

(i) Would you expect the coefficient of X1 to be positive or negative? Explain.

(ii) Would you expect the coefficient of X3 to be positive or negative? Explain,

(d) Which independent variables have a significant coefficient in the regression? Explain.

(e) Based on the results of your regression only, do you think that the producing in a sustainable manner (as measured by the independent (X) variables) have an impact on annual percent growth rate of GDP? Explain.