The accompanying scatterplot shows the growth rate (in % of Gross Domestic Product) of 27 countries from a certain region vs. the growth rate of the leading country in another region. Each point represents one of the years from 1973 to 2014. The output of a regression analysis follows the scatterplot. R2= 45.13%
S= 1.309
Variable Coefficient
Intercept 0.367
Leading Countries GDP growth 0.539
Check the assumptions and conditions for the linear model. What assumptions and conditions are met?
A. All of the assumptions and conditions are met with the exception of the condition that there are no outliers (there is one outlier in the scatterplot).
B. All of the assumptions and conditions are met with the exception of the Quantitative Variables Condition; the data are categorical.
C. All of the assumptions and conditions are met with the exception of the Linearity Condition; the points do not follow a straight line pattern (as evidenced by the
Upper R squaredR2-value).
D. All of the assumptions and conditions are met. The variables are quantitative (with units % of GDP), the plot is reasonablystraight, there are no outliers, and the spread is roughly constant (although the spread is large).