An Economist Examines the Relationship Between the Number of Patent

question 5

Essay

An economist examines the relationship between the number of patent applications filed and expenditures in research and development (R&D)for the 50 states and the District of Columbia.She believes that if a state spends more on research and development,then more patents will be filed.She estimates the following model: ,
where Patents is the number of patent applications filed and R&D is the state's expenditures on research and development (in $1,000,000s).Data was obtained from the 2012 Statistical Abstract of the United States for the year 2007.The regression results are shown in the accompanying table. a.Predict the number of patents filed for a state that spends $5,000,000 on R&D.
B)Interpret the coefficient attached to R&D.
C)Calculate the standard error of the estimate.
D)Interpret the coefficient of determination.

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Definitions:

DMSO

Dimethyl sulfoxide, a polar solvent with the formula (CH3)2SO, known for its ability to penetrate biological membranes and used in various chemical and pharmaceutical applications.

Nucleophilic

Describes a chemical species that donates an electron pair to an electrophile to form a chemical bond in a reaction.

Solvolysis

The decomposition of a chemical compound by reaction with a solvent.

Aqueous Ethanol

A solution where ethanol is dissolved in water, commonly used as a solvent in various chemical reactions and processes.