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Question: The Group of Eight (G8) consists of most of the major world economic powers. It meets annually to discuss pressing world problems. In 2005, for example, the agenda included global warming, poverty in Africa, and terrorism. Decisions made by G8 nations can have a global impact; in fact, the eight nations that make up the membership reportedly account for almost twothirds of the world's economic output. Here are data for seven of the eight G8 nations for gross domes - tic product (GDP) in 2004 (according to the World Bank) and a measure of education. The measure of education is the percentage of the population between the ages of 25 and 64 that have at least one university degree (Sherman, Honegger, & McGivern, 2003). Russia is not included because no data point for education was available.

21_GDP.png

a. Create a scatterplot of these data with university degree on the x-axis, being sure to label everything and to give it a title. Later, we'll use statistical tools to determine the equation for the line of best fit. For now, draw a line of best fit that represents your best guess as to where it would go.

b. In your own words, describe the relation between the variables that you see in the scatterplot.

c. Education is on the x-axis, indicating that education is the independent variable. Explain why it is possible that education predicts GDP. Now reverse your explanation of the direction of prediction, explaining why it is possible that GDP predicts education.

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