Better GDP model? Consider again the post-1950 trend in U.S. GDP we examined in given Exercise. Here are a regression and residual plot when we use the log of GDP in the model. Is this a better model for GDP? Explain.
Exercise :
GDP. The scatterplot shows the gross domestic product (GDP) of the United States in billions of dollars plotted against years since 1950.
a) Does the value 97.2% suggest that this is a good model? Explain.
b) Here's a scatterplot of the residuals. Now do you think this is a good model for these data? Explain?
