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Regression Analysis

See the attached file.

(1) What can you now infer about the relationship between Corporate Taxes and Capital Formation (Investment)? Is it a positive or negative relationship? (based on the attached Case study)

(2) Based on the attached lecture, look at the original table....it is a snapshot of the world economy from the year 1983.

Examine the results of the Regression Analysis as illustrated on the final scatterplot and notice the position of the US and Japan in relationship to the Regression Curve (straight line). What can you infer about the US economy in 1983 in relation to the line (keep in mind The U.S. is slightly below the line).

(3) What is your favorite statistical process and why?

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Solution Summary

A Complete, Neat and Step-by-step Solution is provided in the attached file.