2.152 Dwelling permits and sales for 21 European countries.

The Organization for Economic Co-operation and Development collects data on Main Economic

Indicators (MEIs) for many countries. Each variable is recorded as an index with the year 2000

serving as a base year. This means that the variable for each year is reported as a ratio of the value for the year divided by the value for 2000. Use of indices in this way makes it easier to compare values for different countries.

MEIS

(a) Make a scatterplot with sales as the response variable and permits issued for new dwellings as the explanatory variable. Describe the relationship. Are there any outliers or influential observations?

(b) Find the least-squares regression line and add it to your plot.

(c) What is the predicted value of sales for a country that has an index of 160 for dwelling permits?

(d) The Netherlands has an index of 160 for dwelling permits. Find the residual for this country.

(e) What percent of the variation in sales is explained by dwelling permits?