Many countries, especially those in Europe, have significant gold holdings. But many of these countries also have massive debts. The following data show the total value of gold holdings in billions of U. S. dollars and the debt as a percentage of the gross domestic product for nine countries (WordPress and Trading Economics websites, February 24, 2012). Gold Value ($ billions) Debt (% of GDP)
Country
China 63 17.7
France 146 81.7
Indonesia 203 83.2
Germany 33 69.2
Italy 147 119
Netherlands 36 63.7
Russia 50 9.9
Switzerland 62 55
United States 487 93.2
Using the entire data set, develop the estimated regression equation that can be used to predict the debt of a country given the total value of its gold holdings (to 4 decimals (to 4 decimals)

X`= -0.60872 Y + 176.4085

or X`=   176.4085-0.60872 Y

Step-by-step explanation:

Country  Gold Value  Debt (% of GDP)

               ($ billions) X           Y                 XY          X²            Y²

China            63                 17.7              1115.1         3969       313.29

France         146                81.7              11928.2    21316       6674.89

Indonesia    203               83.2            16889.6    41209       6947.2

Germany       33               69.2             2283.6     1089          4788.64

Italy              147                 119              17493       21609        14161

Netherlands   36             63.7              2293.2      1296         4057.69

Russia           50                9.9              495            2500        98.01

Switzerland  62                   55            3410           3844         3025

United States 487             93.2           45,388.2      237169    8686.24      

∑                     1227           592.6          101245.9      334001      48751.96

The estimated regression equation that can be used to predict the debt of a country given the total value of its gold holdings

X =  a1 + bxy Y

wher e

bxy = n ∑XY -∑X∑Y/ n ∑Y²- (∑Y)²

= 9( 101245.9 )-  (1227 *592.6)/  48751.96-(592.6)²

911213.1 - 727120.2/ - 302422.8= - 0.60872

a1= X` -bxy Y`= 136.33- (-0.60872)(65.84)

= 136.33+ 40.07858= 176.4085

Hence X`= -0.60872 Y + 176.4085

or X`=   176.4085-0.60872 Y

step-by-step explanation:

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