(Continuation from Chapter 4,number 5)You Have Learned in One of Your

question 1

Essay

(Continuation from Chapter 4,number 5)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: = 0.518 - 18.831×(n - nus),R2=0.522,SER = 0.197
(0.056)(3.177)
(a)Is there any reason to believe that the variance of the error terms is homoskedastic?
(b)Is the relationship statistically significant?

---

Definitions:

Evolutionary Function

The role a particular behavior or physiological mechanism plays in the survival and reproductive success of an organism.

Sleep

A naturally recurring state of mind and body, characterized by altered consciousness, relatively inhibited sensory activity, and inhibition of nearly all voluntary muscles.

Dreams

A series of thoughts, images, and sensations occurring in a person's mind during sleep, often symbolic of deeper psychological themes.

Significance

Pertains to the importance, meaning, or worth of something in a given context, often used in statistical analysis to denote non-random results.