Human Development Index
The United Nations Development Programme (UNDP) collects data in the developing world to help countries solve global and national
a) Explain why fitting a linear model to these data would be misleading.
b) If you fit a linear model to the data, what do you think a scatterplot of residuals versus predicted HDI will look like?
c) There is an outlier (Luxembourg) with a GDPPC of around $70,000. Will setting this point aside improve the model substantially? Explain.