Lab 3 - Andrew Cheung Lab#4 Abstract Throughout this lab I learned more about the complexities that make up ecnomic models Ive come to see more

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Andrew Cheung April 15, 2010 Lab #4 Abstract Throughout this lab I learned more about the complexities that make up ecnomic models. I’ve come to see more correlations between the investment of a nation, it’s educated people and the growth of a nations real GDP. It seems that the higher the nations investment the higher the nations growth rate. Pre-Lab Answers: 1. 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 relationship. If beta is equal to 0, there is no significant relationship between GDP growth and Investment, but if it is greater than then there exists some correlation between the two variables. Procedures: 1. Attached. 2. Attached. 3. Attached. 4. There were a not many outliers aside from those addressed in the previous lab. 5. The GRETL script produced the following model: y = 0.37 + .59x 1 + 0.14x 2 - .86x 3 + .03x 4 Where x 1 is population growth, x 2 is Investment, x 3 is OECD, and x 4 is School. 6.
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This note was uploaded on 02/08/2011 for the course ECONOMICS 101 taught by Professor June during the Spring '08 term at Rutgers.

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Lab 3 - Andrew Cheung Lab#4 Abstract Throughout this lab I learned more about the complexities that make up ecnomic models Ive come to see more

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