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:

Ratios

A mathematical relation between two numbers showing how many times the first number contains the second.

Visual Distortion

Visual distortion involves the alteration of visual perception, where what is seen does not correspond to the physical reality, often due to specific conditions or effects in photography, art, and displays.

Bar Chart

A graphical representation of data using bars of varying heights or lengths to compare different categories of information.

Quantitative Axis

A graphical representation axis that displays numerical information, often used in data analysis and statistics.