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Global warming and foreign investments. Scientists
Chapter 12, Problem 146SE(choose chapter or problem)
Global warming and foreign investments. Scientists believe that a major cause of global warming is higher levels of carbon dioxide \(\left(\mathrm{CO}_2\right)\) in the atmosphere. In the Journal of World-Systems Research (Summer 2003), sociologists examined the impact of foreign investment dependence on \(\mathrm{CO}_2\) emissions in n = 66 developing countries. In particular, the researchers modeled the level of \(\mathrm{CO}_2\) emissions in 1996 based on foreign investments made 16 years earlier and several other independent variables. The variables and the model results are listed in the table below.
a. Interpret the value of \(R^2\).
b. Use the value of \(R^2\) to test the null hypothesis, \(H_0: \beta_1=\beta_2=\cdots=\beta_7=0\), at \(\alpha=.01\).
c. What null hypothesis would you test to determine if foreign investments in 1980 is a statistically useful predictor of \(\mathrm{CO}_2\) emissions in 1996 ?
d. Conduct the test, part c, at \(\alpha=.05\).
Questions & Answers
QUESTION:
Global warming and foreign investments. Scientists believe that a major cause of global warming is higher levels of carbon dioxide \(\left(\mathrm{CO}_2\right)\) in the atmosphere. In the Journal of World-Systems Research (Summer 2003), sociologists examined the impact of foreign investment dependence on \(\mathrm{CO}_2\) emissions in n = 66 developing countries. In particular, the researchers modeled the level of \(\mathrm{CO}_2\) emissions in 1996 based on foreign investments made 16 years earlier and several other independent variables. The variables and the model results are listed in the table below.
a. Interpret the value of \(R^2\).
b. Use the value of \(R^2\) to test the null hypothesis, \(H_0: \beta_1=\beta_2=\cdots=\beta_7=0\), at \(\alpha=.01\).
c. What null hypothesis would you test to determine if foreign investments in 1980 is a statistically useful predictor of \(\mathrm{CO}_2\) emissions in 1996 ?
d. Conduct the test, part c, at \(\alpha=.05\).
ANSWER:Step 1 of 5
We are given the information regarding the global warming in n=66 developing countries
as a result the scientists are considered that major cause for global warming as higher
level of carbon dioxide in the atmosphere.
a) From the output we have the 
As we know that the higher value of the coefficient of determination
model is not the best fit. As
explaining only 31% of the sample variation.