Use the required data set below to answer the following questions

Using the Required Data Set linked on this page, answer the following questions. REQUIRED DATA SET 1. Fuel demand in OECD countries: This largely replicates what you saw in the Download the Global Fuel Data 2010 i, and read the "Notes" tab to make sure that lectures. u Restricting your data to the OECD subset for now, create two scatter plots showing the relationship between fuelcon and fuelprice and between fuelcon and gdppc. Briey describe what they imply about the you are familiar With all the relationships between these variables. variables. o Use multiple regression {for the DEED sample] to estimate the demand function for motor fuels {again using fuelcon and fuelprice}, with quantity as a function of both the price and income {per capita GDP}. Run the regression once in a linear specication and once in terms of the natural logs of the variables. Display the tables of results. an Discuss the regression results: interpret the slope coefcients, discuss their statistical signicance, and discuss the goodness of t of the regressions. Are the results consistent with what you would expect for a demand relationship? How do you interpret the slope coefcients in the regressions in logs? Are they of a magnitude you would expect? 2. Fuel demand for non-OECD countries: a Repeat all parts of #1 for the sample of nonOECD countries. o IICompare the results for the OECD and nonDEED samples. Do the intercepts and the effects of price and income appear to be similar across these groups of countries? In comparing across regressions, use the 95% condence intervals to give a rough idea whether the estimates are "close" to each other or quite different. What do you think might account for any substantial differences? 1A skeptic claims that price and income are far less important in determining cross-country differences in fuel consumption than other factors, such as whether the country has an abundant supply of fossil fuels. or whether people have to drive to get where theyr need to go, or how far they have to drive when they do. Using variables available in the spreadsheet [as well as any new variables you might construct from them}, assess these claims, with scatter plots and multiple regressionlsl. Make sure you explain what you have done, and include controls for price and income in all regressions. Does the evidence bear out the skeptic's claims? Does any of these purported factors help account for any major differences between the OECD and non-DECO samples? Explain how you know. using additional data analysis if needed