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a) Using the data set Homework1.Regression1.xlsx, please run a regression with rgdppc (RealGDP per capita) as the dependent (Y) variable and all other variables pop, rconpc, iy, exports, debtgdp, expenditure, hpnom, as the independent (X) variables.Please copy and paste your Excel output into your word document and do not submit your Excel file.
(b) What can you say about the goodness of fit of the equation? Please explain.
(c) Which independent variables have a significant coefficient in the regression? Please explain.
(d) Based on the above regression only, please recommend one policy that the government can implement (other than changing population) to increase real GDP per capita? Please explain why you chose this policy.
(e) Using the data set Homework1.Regression2.xlsx, please run a regression with rgdppc (RealGDP per capita) as the dependent (Y) variable and all other variables pop, rconpc, iy, exports, debtgdp, expenditure, hpnom, as the independent (X) variables.Please copy and paste your Excel output into your word document and do not submit your Excel file.
(f) Which regression, the one in (a) or the one in (e), is a better fit for the data? Please explain.
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