REFERENCES 187
(c) Take the logarithm of X = GDP and repeat the steps in (a) and (b) using
(d) Explain why there is an increase in T when the logarithm of X is taken.
per capita as the X variable from the data given in Problem 12.4.
(a) Fit a least-squares regression line and compute T.
(b) Try a transformation on X and recompute T. Did it increase, and if so, why?
12.7 In Problem 12.4, a regression line was fitted using X = life expectancy and
Y = crude birth rate. The x = 68.7years and 7 = 21.4 births per 1000
population. Here, the effect of the three types of outliers will be explored.
(a) Add an outlier in Y that has a value (X, Y) of (68.7,44) and recompute the
(b) Remove the outlier added in (a) and add an outlier in X of (85,ll). Recom-
(c) Remove the outlier in (b) and add an outlier in X and Y (influential point)
(d) Compare the effects of these three outliers on the slope coefficient and the
log(GDP) as the X variable.
12.6 Plot the scatter diagram using the crude birth rate as the Y variable and GDP
regression line.
pute the regression line.
of (85,44). Recompute the regression line.
correlation coefficient.
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