Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You will run a regression with 2013 per capita GDP and 2013 per capita health care spending. It seems plausible that in countries where people

You will run a regression with 2013 per capita GDP and 2013 per capita health care spending. It seems plausible that in countries where people have greater income they also spend more on health care. You will use per capita GDP as the independent or explanatory variable in your regression and health care spending will be the dependent variable.

Warning: I have seen students in the past mix up the dependent and independent variables and this leads to a bunch of wrong answers. Please be careful and remember that the "Y" variable is the dependent variable and that the "X" variable is the independent variable. Use the World Bank data provided to run a regression where 2013 per capita health care expenditure is the dependent variable and 2013 per capita GDP is the independent variable. What is R square? Answer to three decimal places.

Note: R square in the simple regression model from the text is r2

Use the results from the regression you just ran with per capita GDP and health care. You already found R square for this regression. What is the estimated variance of the error term (this is the mean-squared error)? Answer to the nearest integer. Hint this number should be less than 1,000,000.

Use the results from the regression you just ran with per capita GDP and health care. You already found R square for this regression. What is the estimated standard deviation of the error term? Answer to the nearest integer.

Use the regression results you have found. What is the test statistic for a test that the slope of the regression line is 0? Answer to two decimal places.

Use the same regression results where you already found R square and other results for this regression. What is the standard error for the estimated slope of the regression line? Answer to four decimal places.

Using the same regression results what is the estimated coefficient on per capita GDP? Answer to three decimal places.

Using the results from the regression you ran, what is the predicted per capita spending on health care for a country with per capita GDP of $20,000? Answer to the nearest integer, do not include a dollar sign, you may round up or down as usual. Hint your answer should be between 100 and 10,000 which is not much of a hint but it tells you if you are way out of the ballpark.

Based on your regression results and your answer in the previous question using the World Bank data, what happens to per capita expenditure on health care as per capita GDP increases?

a. The total expenditure stays constant because as the price increases the amount people buy stays the same.

b. The total expenditure decreases. As the per capita GDP increase people are healthier and so they spend less on health care on average.

c. None of the other answers are correct.

d. The expenditure increases. As per capita GDP increases people tend to spend more on health care.

Regression Statistics
Multiple R 0.90333247
R Square 0.81600955
Adjusted R Square 0.81498738
Standard Error 783.437634
Observations 182
ANOVA
df SS MS F Significance F
Regression 1 489983361 489983361 798.311659 4.4554E-68
Residual 180 110479415 613774.527
Total 181 600462776
Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept -82.083379 70.8191319 -1.1590566 0.24796844 -221.82587 57.6591148 -221.82587 57.6591148
326.437109 0.08246437 0.00291864 28.2544095 4.4554E-68 0.07670522 0.08822351 0.07670522 0.08822351

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Geometry And Analysis Of Fractals Hong Kong, December 2012

Authors: De Jun Feng, Ka Sing Lau

1st Edition

3662439204, 9783662439203

More Books

Students also viewed these Mathematics questions

Question

3. Call on low achievers as often as you do high achievers.

Answered: 1 week ago

Question

(28+512) 2

Answered: 1 week ago

Question

Values: What is important to me?

Answered: 1 week ago