Question

| A study usod hissorical data to model the GDP por cap ta of 24 countrios.One analysis ostimated tho offect on GOP af ecanonic rogulations, using an index of the degrue ofecoomic regulaion and other variables. Thay found the rogrossion modal in tho a indvidual coeficents have P-values 0.05 except the coe币cent of Primary Education. Complete parts a) and b) below. able. Al t-statstics on tho Clkck the icon to viow the mutsple regrossian modal for GDP Capita. a) The researchers hoped to show that more regulation leads lo lower GDPICapita. Does the coefficient af the Economic Rฉglation Index demonstrate that? Explain. O A. Yus·it says that thu uffect of mare reglation on GDP is nagativa, regardless cf tho other predictors in tho model O B. No, it saye that the effect of more regulation on GDP is postive, regardless of the other predictors in the model О с. Na, it says that after alowing for the Qtects of al the other prodctors n tho modol, the uffect of more regulation on GDP is nogative. O D Yes. says thet after alo ng forte effects of ell lhe other predinora in the model the eflect of more regulation on positi e b) The F-statistic fr this model is 131.07 (5-17 dr. what do you ooncude about the moder? O A. The F-statistic would yield a p.value that not sigrificant. It cannot be 8aid wth confidence lhat the regression coeficients aren't al zero. O B. The F-Statistic would yield a p-value thais significant. It can be said with conddenoo that more ragulabon leads to lower GDP/Capita. Ο C. The F-statistic would yield a p.value that significant n can be said with confidente that the regresson toefficients aren't al zero. O D. The F-statistic would yield a p-value thas not significant. It cannot be said with coddence lhat more regulation loads lo lower GDP/Capita. c) If GDPCapta (10 years prior) is removed 8s a predictor, then the F-stataic drops to 0.683 and none of the 1-statistics are sgnificant (al P-values> 0.22). Reconsider your interpretation in part a O A. The interprotation in part a is valid. Allowing for GDP/Capita (10 yoars prior), the other variables signifcantly contribusa lo the madel; without allowing for GDP/Capita (10 years prior), tha other predictars do not B. The coefficient of the Economic Regulation Index is acually a preciclar of GDP Capita (10 years prior) C. The interpretation in part a isnot valid. Since Economc Regulation Index daes not significantly contribute to this modal, it is not reasonable to daim a ralationship to GDPCapita D. The coeicient dl GDP Capita (10 yeare prior) is acualy a prediclor of Economic Regulation Index. 1 Multiple Regression Model for GDP/Capita Capita- 10996-1389 Eccnomic Regulalion Inddex +1.073 GDP Capita (10 years prior)-88.11 Ethno-Ingu stic Diversity Index+45.33 Trade as share of GDP-5851 Primary Education 0% Eigite Population) Print Done Click to select your answer.

Answer 1