Lab 2 - Andrew Cheung March 9, 2009 Lab #2 Abstract...

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Andrew Cheung March 9, 2009 Lab #2 Abstract Throughout this Lab I learned only slightly about the relationship between Investment and GDP growth. But what I seemed to learn more about was the statistical relevance certain variables held, and how they can help interpret the data I was presented with. I learned I must always look for errors in the data and give a practical to look at the data than just trust in the visual representations. Pre-Lab Answers: 1. The data presented is Secondary Time-Series data because it is data from a secondary source and describes an item (Real GDP Growth / Investment) over a series of time. 2. Null hypothesis: Beta sub i = 0, Alternative Hypothesis: Beta sub i > 0. The reason I chose this alternative hypothesis is because we are testing for significance in the regression. If beta is equal to 0, there is no significant relationship between x and y, but if it is greater than then there exists some correlation between the two random variables. 3. The sign of the dummy variable I would expect to negative, since there are more countries no in the OECD than are, and when plotted I would imagine a downward slope with Y being OECD and X being the countries Real GDP growth. Procedures:
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Lab 2 - Andrew Cheung March 9, 2009 Lab #2 Abstract...

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