Chapter 14, Problem 1CSD

At the beginning of this chapter, we presented selected OECD healthcare data for the 34 member countries for the year 2011 or, in a few cases, the nearest year to that. Recall that % GDP is an abbreviation for “healthcare expenditures as a percentage of gross domestic product,” LE for “life expectancy” (at birth), and IMR for “infant mortality rate” (number of deaths of babies under 1 year of age per 1000 live births).

Now that you have studied regression and correlation, you can analyze the relationship between % GDP and LE and that between % GDP and IMR. We recommend that you use statistical software or a graphing calculator to solve the following problems, but they can also be done by hand.

1.                                            a.      Considering % GDP as the predictor variable and LE as the response variable, construct a scatterplot of the data.
2.                                            b.      Does the data point for the United States appear to be an outlier? Explain your answer and discuss it in the context of % GDP and LE.
3.                                             c.      Find the regression equation for the data, both with and without the data point for the United States. Plot the regression lines and the data points.
4.                                            d.      Is the data point for the United States an influential observation? Explain your answer and discuss it in the context of % GDP and LE.
5.                                             e.      Obtain the coefficient of determination, both with and without the data point for the United States. Interpret your results.
6.                                              f.      Determine the correlation coefficient, both with and without the data point for the United States. Interpret your results.
7.                                            g.      Repeat parts (a) – (f) with % GDP as the predictor variable and IMR as the response variable.