Using Assignment II data set, answer the following using excel: 1. Generate the output for the whole sample, (20 points) 2. List the independent variables that are insignificant? (10 points) 3. Plot and briefly discuss the residual. (20 points) 4. Does the data set represent a homogenous sample? If not, explain. (10 points) 5. What are the implication of a non-homogenous sample? (10 points) 6. How would you fix the issue of sample non-homogeneity? (10 points) 7. Show your work for number 6. (20 points) Variables in the file are: GDP per capita growth (annual %) =gdpg Gross fixed capital formation (% of GDP)= inv Population growth (annual %)=pop Government expenditure on education, total (% of GDP)=gov Trade (% of GDP)=tr Source: World Bank Development Indicators

Home Insert Draw Page Layout Formulas Data Review View Tell m Calibri (Body) F A do Wrap Paste A1 X fx country 4 I 218 Luxembou 1980 0.48255 24.839 0.35598 4.40942 168.525- 219 Luxembou 1981 -0.84367 23.2933 0.29477 4.54113 166.94 220 Luxembou 1982 1.04829 22.893 0.08211 5.11036 170.288 221 Luxembou 1983 2.96175 19.4578 0.02653 3.21568 170.975. 222 Luxembou 1984 6.07785 18.3667 0.10279 3.21568 190.186 223 Luxembou 1985 2.59325 16.1912 0.19326 3.44339 201.133 224 Luxembou 1986 9.49157 20.5547 0.44867 3.6711 183.575- 225 Luxembou 1987 3.27947 23.7042 0.64808 3.95512 182.468 226 . Luxembou 1988 7.67911 23.7875 0.72561 3.88856 183.93 227 Luxembou 1989 8.73531 23.2501 0.97263 3.75107 185.992. 228 Luxembou 1990 4.00981 23.5638 1.25175 3.75107 182.869 229 Luxembou 1991 7.19841 25.375 1.33968 3.75107 183.691 230 Luxembou 1992 0.47608 21.4908 1.32835 3.75107 177.769- 231 .Luxembou 1993 2.81122 23.8332 1.34239 3.75107 176.668 232 Luxembou 1994 2.41663 22.5002 1.36184 3.64784 180.951 233 Luxembou 1995 0.0173 21.6694 1.40474 3.54446 184.615 - 234 Luxembou 1996 0.01774 19.8408 1.36114 3.34158 190.432 235 Luxembou 1997 4.39291 20.6729 1.2535 3.34158 210.582 236 Luxembou 1998 4.73376 22.0081 1.24387 3.34158 232.89- 237 Luxembou 1999 7.02569 22.7153 1.35062 3.34158 239.217 238 Luxembou 06.7947 20.2205 1.34408 3.4673 271.9517 239 Luxembou 2001 1.31861 21.5152 1.19046 3.59302 271.345- 240 .Luxembou 2002 2.73747 20.9617 1.04766 3.59302 258.8431 241 .Luxembou 2003 0.40176 20.3764 1.2152 3.59302 254.101 242 Luxembou 2004 2.14992 20.3445 1.42133 3.59302 281.208- 243 Luxembou 2005 1.60586 19.1034 1.53006 3.59302 297.773 244 Luxembou 2006 3.51414 17.6115 1.59505 3.59302 320.598 245 Luxembou 2007 6.694 18.4166 1.54439 3.59302 332.505- 246 Luxembou 2008 -3.02853 20.2676 1.7875 3.59302 343.562 247 Luxembou 2009 -6.11337 18.4055 1.85178 3.59302 295.973 248 Luxembou 2010 2.96812 17.6082 1.82541 3.59302 316.161- 249 -Luxembou 2011 0.28528 19.1788 2.22266 3.86697 323.45 250 Luxembou 2012 -2.71709 20.1631 2.40154 4.14091 341.862; 251 Luxembou 2013 1.61436 19.0921 2.31118 4.1124 351.712 . 252 Luxembou 2014 3.16644 18.9059 2.35698 4.08388 378.622 253 Luxembou 2015 1.57854 18.1567 2.35995 4.08388 419.53 254 Netherland 1980 0.54313 23.2429 0.79133 5.96277 100.336- 255 Netherland 1981 -1.46195 21.3157 0.68605 5.83888 105.414 256 .Netherland 1982 -1.69259 20.6733 0.45856 5.75584 105.047 257 Netherland 1983 1.68362 20.5643 0.37922 5.57733 105.357. 258 Netherlanc 1984 2.6534 21.085 0.39693 5.15249 111.114 259 .Netherland 1985 2.10294 21.8535 0.46633 5.5446 115.072 260 Netherland 1986 2.21813 22.446 0.55496 5.64544 97.6318 - 261 Netherland 1987 1.28652 22.7614 0.63453 5.98417 96.1642 Sheet1 + Select destination and press ENTER or choose Paste\fHome Insert Draw Page Layout Formulas Data Review View Q Te Calibri (Body) F AA V W Paste X country LL I 304 Norway 1994 4.45898 21.6248 0.56939 7.83255 68.7284- 305 . Norway 1995 3.61466 21.4394 0.51913 7.69678 68.3265 306 Norway 1996 4.49698 21.8227 0.50688 7.16981 71.1215 307 Norway 1997 4.71536 23.5513 0.54222 7.31202 73.0636. 308 Norway 1998 2.01518 26.515 0.59541 7.38095 72.0219. 309 Norway 1999 1.31715 23.4661 0.68476 6.94283 70.0079 310 Norway 2000 2.53761 19.8158 0.64904 6.45563 74.6218- 311 Norway 2001 1.57003 19.5255 0.50605 6.84949 73.2664. 312 Norway 2002 0.89214 19.4381 0.53929 7.44218 67.647 313 Norway 2003 0.32965 18.8682 0.58653 7.41803 66.5837- 314 Norway 2004 3.34652 19.5977 0.59093 7.31065 69.049! 315 Norway 2005 1.92815 20.3349 0.68107 6.86503 70.8508 316 Norway 2006 1.57372 20.9269 0.80539 6.37218 72.3887 - 317 Norway 2007 1.87021 23.4456 1.03473 6.53488 73.194! 318 Norway 2008 -0.85905 22.4383 1.24633 6.27821 74.9385 319 Norway 2009 -2.85541 23.1056 1.26113 7.09893 67.1312- 320 Norway 2010 -0.6435 20.5801 1.24567 6.75019 68.4096. 321 Norway 2011 -0.33252 21.3165 1.29719 6.46073 69.832 322 Norway 2012 1.4081 22.2406 1.31344 7.35993 68.3054- 323 Norway 2013 -0.21516 23.3507 1.20914 7.37329 67.7041 324 Norway 2014 0.7759 23.5409 1.12774 7.37329 68.818 325 Norway 2015 0.60493 23.4039 0.99508 7.37329 69.3463- 326 Portugal 1980 3.46437 30.5675 1.08143 3.06713 54.2287! 327 Portugal 1981 0.7408 33.0013 0.86708 3.18544 55.5695 328 Portugal 1982 1.51289 33.2341 0.61133 3.32877 55.7555- 329 Portugal 1983 -0.6352 31.2145 0.46397 3.23249 58.92041 330 Portugal 1984 -2.25658 25.2194 0.38455 3.14223 64.4041 331 Portugal 1985 2.52661 23.3167 0.27354 3.26217 61.5087- 332 Portugal 1986 4.04628 23.6476 0.09095 3.04895 54.0133 333 Portugal 1987 6.41006 26.1729 -0.02695 3.15767 59.5684 334 Portugal 1988 7.6009 27.8996 -0.10395 3.38719 63.1916. 335 Portugal 1989 6.59607 27.1168 -0.14592 3.4749 64.8608 336 Portugal 1990 4.17733 26.7242 -0.21795 3.56937 65.0475 337 .Portugal 1991 4.60903 25.4177 -0.23048 4.07093 60.3591- 338 Portugal 1992 1.1681 24.1665 -0.07775 4.33704 56.3003. 339 Portugal 1993 -2.16302 22.6592 0.12232 4.84047 54.1685 340 Portugal 1994 0.69352 22.6827 0.26909 4.67084 57.1703 341 Portugal 1995 3.92237 23.2691 0.3462 4.61286 59.907. 342 Portugal 1996 3.10827 23.7964 0.376 5.06512 60.2082 343 Portugal 1997 3.96103 25.9837 0.44646 5.06512 62.2873 - 344 Portugal 1998 4.2635 27.3337 0.50539 5.06512 63.8107 345 Portugal 1999 3.30225 27.5786 0.56563 5.03018 63.2932 346 .Portugal 2000 3.06057 27.9911 0.70286 5.18057 67.4234- 347 Portugal 2001 1.2269 27.3672 0.70523 5.3283 65.0641 Sheet1 + Select destination and press ENTER or choose PasteHome Insert raw Page Layout Formulas Data Review View Te ox Calibri (Body) AA Paste B MVA HE ICH A1 X fx country I LL 131 Germany 2001 1.52454 21.6757 0.16823 4.44955 61.9778. 132 Germany 2002 -0.16799 20.0389 0.16813 4.44955 60.773 133 .Germany 2003 0.76486 19.5084 0.05536 4.44955 61.5191 134 Germany 2004 1.19194 19.1565 -0.02171 4.44955 65.8561 135 . Germany 2005 0.76391 19.0694 0.05678 4.36734 70.4212 136 .Germany 2006 3.8172 19.8212 -0.1128 4.28512 77.0822 137 Germany 2007 3.39871 20.1164 -0.13372 4.34862 79.3705 138 .Germany 2008 1.2747 20.3303 -0.19014 4.41254 80.9449 139 Germany 2009 -5.37941 19.1613 -0.25338 4.88104 70.6651. 140 Germany 2010 4.2395 19.4356 -0.1532 4.91379 79.3031. 141 Germany 2011 5.59948 20.2663 -1.85372 4.81336 84.7477 142 Germany 2012 0.30352 20.1122 0.18773 4.9302 85.8748 143 Germany 2013 0.21572 19.7124 0.2729 4.92842 84.9573 . 144 .Germany 2014 1.17269 20.0124 0.41688 4.95219 84.7811 145 . Germany 2015 0.84394 19.9095 0.8657 4.95219 85.9939 146 Iceland 1980 4.63407 28.6956 1.0589 4.22526 69.4072- 147 .Iceland 1981 3.08253 27.8555 1.14058 4.22526 69.1467 148 Iceland 1982 0.79824 27.7767 1.33661 4.22526 67.5541 149 Iceland 1983 -3.43819 24.4257 1.32404 4.22526 75.5087- 150 Iceland 1984 3.02744 24.0921 1.06363 4.22526 74.3811 151 .Iceland 1985 2.48243 23.3123 0.78767 4.22526 78.5508 152 Iceland 1986 5.49486 21.3199 0.73259 4.22526 71.6994. 153 .Iceland 1987 7.36317 22.5884 1.09563 4.22526 68.0635 154 Iceland 1988 -1.64235 21.7447 1.56622 4.22526 62.9927 155 Iceland 1989 -0.9755 20.5187 1.2384 4.22526 63.3761. 156 .Iceland 1990 0.38567 21.0312 0.77766 4.22526 64.5289 157 .Iceland 1991 -1.37341 21.3161 1.15915 4.22526 62.4325 158 Iceland 1992 -4.58053 19.5326 1.25663 4.66157 59.343 159 Iceland 1993 0.2885 17.6745 1.01681 5.09788 61.0098 160 Iceland 1994 2.71462 17.2336 0.86684 4.71242 64.9191 161 Iceland 1995 -0.42505 16.9346 0.54247 4.73785 65.9556. 162 Iceland 1996 4.22084 20.474 0.53991 5.16433 70.3784 163 Iceland 1997 4.05725 21.2574 0.8192 5.98769 70.3623 164 Iceland 1998 5.43206 25.5113 1.07086 6.81104 72.1868- 165 .Iceland 1999 2.75374 23.2941 1.20924 6.47105 69.8255 166 Iceland 2000 3.257 24.1705 1.36919 6.50071 71.7744 167 iceland 2001 2.46262 22.9857 1.3293 6.79293 75.53- 168 iceland 2002 -0.57672 19.6304 0.8926 7.42179 70.2637 169 .Iceland 2003 1.7332 21.3192 0.6925 7.32641 68.9511 170 Iceland 2004 7.15488 24.768 0.87794 7.22387 70.7596. 171 Iceland 2005 5.02867 29.5216 1.58289 7.41831 73.1232 : 172 .Iceland 2006 2.56456 35.6834 2.34742 7.34941 79.4302 173 Iceland 2007 6.61813 29.3461 2.53009 7.08195 75.8958 . 174 ireland on08 - 25107 75 757 1 85957 7 26275 84 6713 Sheet1 + Select destination and press ENTER or choose PasteCalibri (Body) 11 111 11/1 ab Wrap Text Paste I UV Merge & C x country I LL country year gapg inv pop gov tr HNm Austria 1980 1.73138 27.4408 0.00011 5.02107 66.9567 Austria 1981 -0.39862 27.3497 0.25502 5.38078 68.5318. Austria 1982 1.93812 24.6712 0.07172 5.37594 64.2445 Austria 1983 3.13963 23.8023 0.1616 5.31659 62.596 Austria 1984 1205757 23.3024 -0.00629 5.30726 66.7072 Austria 1985 2.45057 23.9347 0.04695 5.31401 70.2226 Austria 1986 2.2364 23.7251 0.06355 5.49399 64.1421 Austria 1987 1.29305 24.2943 0.06328 5.38016 62.9789 10 Austria 1988 3.14975 25.0441 0.14157 5.21889 66.695 11 Austria 1989 3.4201 25.3008 0.45051 5.01744 70.6786 12 Austria 1990 3.55355 25.4988 0.762 4.97711 71.6307 13 Austria 1991 2.41399 26.5791 0.99842 5.11934 70.1876. 14 Austria 1992 0.97609 26.1655 1.10055 5.32396 67.7643 15 Austria 1993 -0.29875 25.6501 0.82463 5.24965 63.3909 16 Austria 1994 2.00876 26.2967 0.38487 5.34839 66.1178! 17 Austria 1995 2.51091 25.4298 0.15311 5.44713 68.392 18 Austria 1996 2.26015 25.9219 0.13502 5.27553 70.2066- 19 Austria 1997 2.08927 25.5272 0.11332 5.69503 74.993 20 Austria 1998 3.4464 25.5832 0.10973 6.11453 77.0878 21 Austria 1999 3.38864 25.0417 0.19456 6.13795 78.3793- 22 Austria 2000 3.12014 25.6977 0.24047 5.60472 85.4738! 23 Austria 2001 0.96329 24.8404 0.3828 5.58878 87.6386 24 Austria 2002 1.15696 23.5552 0.49198 5.5401 86.96 25 Austria 2003 0.26653 24.1656 0.48713 5.38185 86.4921! 26 Austria 2004 2.07052 23.64 0.62041 5.31006 90.9344 27 Austria 2005 1.4472 23.1117 0.68127 5.27167 94.162 28 Austria 2006 2.84072 22.6734 0.4948 5.26237 98.2303 29 Austria 2007 3.28617 22.9979 0.32415 5.183 100.819 30 Austria 2008 1.22988 23.3779 0.31304 5.29572 . 102.125 31 Austria 2009 -4.05075 22,4824 0.26195 5.7712 86.807 32 Austria 2010 1.68394 21.6421 0.24039 5.7178 98.6831 33 Austria 2011 2.46204 22.4922 0.33708 5.6127 . 104.824- 34 Austria 2012 0.28746 22.6808 0.45594 5.50898 105 35 Austria 2013 -0.4589 23.1364 0.5841 5.56274 103.803 36 Austria 2014 -0.08805 22.7388 0.73087 5.49955 102.732- 37 Austria 2015 -0.10811 22.6082 1.06662 5.49955 102.112. 38 Belgium 1980 4.32901 24.9376 0.11021 5.28236 102.307 39 Belgium 1981 -0.27665 21.6606 -0.00264 5.40638 109.418- 40 Belgium 1982 0.62233 20.392 -0.02718 5.28168 117.064 41 Belgium 1983 0.31981 18.8094 -0.00794 5.28168 119.509 42 Belgium 1984 2.46792 18.4541 -0.0015 5.28168 127.286. 43 Belgium 1985 1.62152 18.9112 0.02979 5.04723 122.963 44 Belgium 1986 1.78647 18.7541 0.03565 4.81278 111.494 Sheet1 + Select destination and press ENTER or choose Paste ... ....... F5 . . . . . FA escAutoSave OFF Home Insert Draw Page Layout Formulas Data Review View Tell me Calibri (Body) 11 A A 2 7 v 9 Wrap Text Paste BIU V V DVAV Merge & C X V fx country H 1 4 88 France 1994 1.96513 20.3121 0.37224 5.57852 41.4751 89 France 1995 1.71697 19.9645 0.36125 5.78253 43.272 90 France 1996 1.02965 19.7546 0.35408 5.72139 43.9365. 91 France 1997 1.97596 19.4148 0.35374 5.68771 47.5813 92 . France 1998 3.17518 19.8003 0.36861 5.65402 49.0057 93 France 1999 2.87649 20.7035 0.51445 5.63791 49.233- 94 France 2000 3.16612 21.417 0.68493 5.49934 55.2594[ 95 France 2001 1.21513 21.4239 0.72779 5.43332 54.3167 96 France 2002 0.38576 20.8689 0.72723 5.42365 52.4155. 97 France 2003 0.10747 20.9479 0.70878 5.71401 50.132 98 France 2004 2.03237 21.2804 0.73632 5.63953 51.1968 99 France 2005 0.84467 21.7227 0.75381 5.50596 53.152. 100 France 2006 1.66368 22.3887 0.69719 5.45172 55.1872 101 .France 2007 1.73013 23.1313 0.61871 5.4331 55.5477 102 .France 2008 -0.36309 23.555 0.55886 5.43274 56.5238- 103 France 2009 -3.43941 22.038 0.51449 5.73558 49.56791 104 France 2010 1.46315 22.0701 0.49404 5.6791 53.9684 105 .France 2011 1.58672 22.4139 0.48364 5.51393 58.169. 106 France 2012 -0.301 22.4783 0.48398 5.52535 59.2004 107 .France 2013 0.05997 22.062 0.51464 5.49299 59.0988 108 France 2014 0.44022 21.6941 0.50387 5.49299 59.6683- 109 France 2015 0.62433 21.382 0.43941 5.49299 61.0635 110 .Germany 1980 1.19869 25.9119 0.20743 4.41016 41.9939 111 .Germany 1981 0.37624 24.7466 0.15231 4.41016 44.3302. 112 Germany 1982 -0.30006 23.3482 -0.09511 4.41016 44.535 113 Germany 1983 1.83903 23.5789 -0.26215 4.41016 43.7202 114 .Germany 1984 3.17899 23.1214 -0.34567 4.41016 46.3959 115 Germany 1985 2.55688 22.6114 -0.22349 4.41016 48.0737 116 .Germany 1986 2.24054 22.4888 0.04577 4.41016 43.0858 117 .Germany 1987 1.2465 22.6453 0.15362 4.41016 41.8265- 118 Germany 1988 3.30286 22.898 0.39068 4.41016 42.6663 119 .Germany 1989 3.09618 23.5777 0.77334 4.41016 45.3646 120 Germany 1990 4.35164 24.388 0.86197 4.41016 46.0142. 121 Germany 1991 4.34522 24.8556 0.72861 4.41016 47.9746 122 Germany 1992 1.15177 25.0633 0.76035 4.41016 45.05 123 Germany 1993 -1.60514 23.9397 0.65739 4.41016 40.6443- 124 Germany 1994 2.10261 23.9883 0.34686 4.33557 42.073 125 Germany 1995 1.43907 23.362 0.2939 4.41819 43.5447 126 .Germany 1996 0.52648 22.8261 0.28947 4.47464 44.9967. 127 Germany 1997 1.70029 22.4898 0.14631 4.4621 49.601 128 Germany 1998 1.96418 22.6158 0.01514 4.44955 51.5829 129 .Germany 1999 1.92124 22.8981 0.06463 4.44955 53.3695 130 Germany 2000 2.8227 22.988 0.13543 4.44955 61.39 131 Germany 1.52454 21.6757 0.16823 4.44955 61.9778 Sheet1 + Select destination and press ENTER or choose Paste