Table 2 shows the Australian gross domestic product (GDP) per person, in dollars, at five yearly intervals for the period 1980 to 2005.
- Complete the time series plot above by plotting the GDP for the years 2000 and 2005. (1 mark)
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- Briefly describe the general trend in the data. (1 mark)
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In Table 3, the variable year has been rescaled using 1980 = 0, 1985 = 5 and so on. The new variable is time.
- Use the variables time and GDP to write down the equation of the least squares regression line that can be used to predict GDP from time. Take time as the independent variable. (2 marks)
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- In the year 2007, the GDP was $34 900. Find the error in the prediction if the least squares regression line calculated in part c. is used to predict GDP in 2007. (2 marks)
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