Regression Assignment

In this question you will use the data in "growth.xlsx" below. The "growth" worksheet gives the average growth rate of different countries from 1960-95 (growth), the value of gdp per capita in 1960 converted to 1960

$US (rgdp60), the average number of years of schooling of adult residents in 1960 (yearschool) and the averagenumberofrevolutions,insurrections,andcoupd'etatsfrom1960-95(rev-coups).Asananalytics consultant you are expected to develop a model for World Bank to explain the growth of a country between years 1960 and1995.

World Bank hypothesized the following model:

Growth=b₀+b₁rgdp60+b₂yearschool+b₃rev-coups+e

1. (2 point) Using SPSS or Excel, construct a scatterplot for growth and rgdp60, growth and yearschool andgrowthandrev-coups.Attachyourscatterplots.Interpretscatterplotstoexplaintherelationship between each independent variable and the dependentvariable.
2. (3 points) Using SPSS or Excel, run the regression to estimate the unknown parametersb₀,b1,b₂

andb3 . Report your least squares prediction equation. Attach your output from SPSS or Excel.

1. (3points)Istheresufficientevidencethattheoverallmodelisusefulforpredictinggrowth?Testusing

a= 0.01.

1. (3points)Testthehypothesisthatthemeangrowthrateincreasesastheaveragenumberofyearsof schooling of adult residents in 1960 increases when rgdp60 and rev-coups held constant.Use

a= 0.01.

1. (2 points) Report and interpret the value ofR².
2. (2points)Usethemodeldevelopedinpartbtogiveapointestimateforthemeangrowthrateforall countries with rgdp is at level $9000, yearschool is at level 8 and rev-coups is at level0.

country_name	growth	rgdp60	yearsschool	rev_coups
India	1.915168	765.9998169	1.450000048	0.13333334
Argentina	0.617645	4462.001465	4.989999771	0.933333337
Japan	4.304759	2953.999512	6.710000038	0
Brazil	2.930097	1783.999878	2.890000105	0.100000001
United States	1.712265	9895.003906	8.659999847	0
Bangladesh	0.708263	951.9998169	0.790000021	0.306481481
Spain	2.880327	3123.001465	3.799999952	0.06666667
Colombia	2.227014	1684.000366	2.970000029	0.100000001
Peru	0.060206	2019.000244	3.019999981	0.266666681
Haiti	-0.65793	923.999939	0.699999988	0.374074072
Australia	1.975147	7782.002441	9.029999733	0
Italy	2.932981	4564.000488	4.559999943	0.033333335
Greece	3.22405	2093	4.369999886	0.166666672
France	2.431281	5823.000488	4.650000095	0
Zaire	-2.81194	488.9999084	0.540000021	0.148148149
Uruguay	1.025309	3967.999756	5.070000172	0
Mexico	1.973942	2836.000244	2.410000086	0
Pakistan	2.698163	638	0.629999995	0.266666681
Niger	-2.75148	531.9998779	0.200000003	0.13333334
Bolivia	0.355058	1147.999756	4.679999828	0.970370352
Germany	2.453688	6569.998535	7.639999866	0.06666667
Canada	2.385988	7257.99707	8.069999695	0
United Kingdom	1.962219	6822.999023	7.670000076	0.266666681
New Zealand	1.124132	7960.000977	9.550000191	0
Philippines	1.158741	1133	3.769999981	0.733333349
Finland	2.798494	5291.001953	7.510000229	0
Venezuela	-0.88355	6337.998047	2.529999971	0.266666681
Korea, Republic of	7.156855	904.000061	3.230000019	0.333333343
Guatemala	0.929231	1659.999756	1.419999957	0.540740728
Honduras	0.597785	1038.999878	1.690000057	0.266666681
El Salvador	-0.60756	1426.999878	1.700000048	0.633333325
Chile	1.446995	2885.000488	4.989999771	0.166666672
Thailand	4.876695	943	3.450000048	0.400000006
Sweden	1.888134	7592.002441	7.670000076	0
Senegal	-0.43782	1047.000122	1.620000005	0.033333335
Trinidad and Tobago	1.120786	5627.001953	4.309999943	0.033333335
Ecuador	2.388093	1460.999634	2.950000048	0.533333361
Denmark	2.17937	6759.999023	10.06999969	0
Switzerland	1.421865	9408.99707	6.869999886	0
Austria	2.889185	5143.000977	3.650000095	0
Zimbabwe	0.838156	988.9998779	1.539999962	0.200000003
Paraguay	2.381932	1176.999878	3.349999905	0.06666667
Costa Rica	1.613697	2096.000244	3.920000076	0
Portugal	3.64731	1869	1.940000057	0.233333334
Togo	0.462775	366.999939	0.270000011	0.166666672
Iceland	3.012389	4963.998535	5.630000114	0
Israel	2.810969	3476.999268	6.989999771	0.06666667
South Africa	0.392021	2191.000244	4.059999943	0.100000001
Norway	3.182494	5610.000488	5.559999943	0
Sierra Leone	-0.33983	877.999939	0.529999971	0.474074066
Dominican Republic	2.498769	1194.999756	2.380000114	0.300000012
Ghana	-0.96316	894	0.689999998	0.437037051
Sri Lanka	2.704598	1258.999878	3.430000067	0.200000003
Taiwan, China	6.624734	1256	3.319999933	0.033333335
Panama	2.027189	1574.999878	4.260000229	0.13333334
Papua New Guinea	1.120371	1235.000122	1.129999995	0.033333335
Kenya	1.962509	659.000061	1.200000048	0.033333335
Ireland	3.254494	3310.999023	6.449999809	0
Jamaica	0.41779	1772.999878	2.460000038	0
Netherlands	2.200577	6076.99707	5.269999981	0
Cyprus	5.384184	2037.000366	4.289999962	0.100000001
Malaysia	4.114544	1420.000244	2.339999914	0.033333335
Belgium	2.651335	5495.001953	7.460000038	0
Mauritius	3.024178	2861.999268	2.440000057	0
parameter	description
growth	average annual % growth of real GDP from 1960-95
rgdp 60	value of GDP per capita in 1960, converted to 1960 $US
yearsschool	average # of years of schooling of adult residents in 1960
rev_coups	average # of revolutions, insurrections and coup d'etats from 1960-95