# Linear regression model - statistics

Let's examine the relationship between GNP per capita and the percentage of respondents willing to pay more n taxes.

a. Create a similar table using the data below for GNP per capita and the percentage willing to pay higher taxes.

b. From the table that you created in part a, calculate a and b and write out the regression equation.

c.Calculate and interpret error type, E2.

d. Using your answer for part c, calculate the PRE measure, r^2. interpret.

e. About what percentage of citizens are willing to pay higher taxes for a country with GNP per capita of 3.0? For a GNP per capita of 30.0?

See attachment.

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#### Solution Summary

The solution provides explanations how to find out R square, E2, slope and y intercept manually.

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