You Have Learned in One of Your Economics Courses That $$\widehat { \text { RelPersInc } } = 0.518 - 18.831 \times \left( n - n _ { u s } \right) , R ^ { 2 } = 0.522 , S E R = 0.197$$

question 10

Essay

You have learned in one of your economics courses that one of the determinants of per
capita income (the "Wealth of Nations")is the population growth rate.Furthermore you
also found out that the Penn World Tables contain income and population data for 104
countries of the world.To test this theory, you regress the GDP per worker (relative to
the United States)in 1990 (RelPersInc)on the difference between the average population
growth rate of that country (n)to the U.S.average population growth rate (nus )for the
years 1980 to 1990.This results in the following regression output: $$\widehat { \text { RelPersInc } } = 0.518 - 18.831 \times \left( n - n _ { u s } \right) , R ^ { 2 } = 0.522 , S E R = 0.197$$ (a)Interpret the results carefully.Is this relationship economically important?

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Definitions:

Mental Age

A measure of an individual's cognitive ability expressed as the age at which an average person reaches the same level of cognitive performance.

Emotional Quotient

A measure of a person's ability to recognize, understand, and manage their own emotions and those of others.

Chronological Age

The actual age of a person or object as measured in years from the date of birth or creation.

Word-recognition Method

A teaching strategy emphasizing the identification and understanding of words in isolation to improve reading skills.