Chapter 10, Problem 11E

(a)

To determine

To find: that the value of 97.2 percent suggests that this is a good model.

Explanation of Solution

Given:

  

  

97.1 percent value of R-square is suggested that 97.1 percent of variability in GDP is accounted for by model. Without looking the residual figure, no one can say that this is good and fits to data well.

(b)

To determine

To Explain: that this is a good model for these data.

Explanation of Solution

Given:

  

By seeing the scatter figure of residual display, it is a curved pattern. When the model fits the data would be well. Scatter figure of residual should not display any pattern. Therefore this is not a good model for this data.