country Y : internet_use X : gdp_capita x=X-Xbar x^2 y=Y-Ybar

Colombia 51.7 8.03 0.5 0.30 9.0

Costa Rica 46.0 10.57 3.1 9.55 3.3
Kyrgyz Republic 23.0 1.28 -6.2 38.44 -19.7
Uzbekistan 26.8 1.91 -5.6 31.02 -15.9
Sudan 22.7 1.96 -5.5 30.47 -20.0
Tunisia 43.8 4.20 -3.3 10.76 1.1
Armenia 41.9 3.84 -3.6 13.25 -0.8
Nigeria 38.0 3.00 -4.5 20.07 -4.7
Tajikistan 16.0 1.04 -6.4 41.47 -26.7
Mexico 43.5 10.30 2.8 7.95 0.8
Montenegro 60.3 7.19 -0.3 0.08 17.6
Greece 59.9 21.87 14.4 207.07 17.2
Venezuela, RB 54.9 12.24 4.8 22.66 12.2
Brazil 51.0 12.22 4.7 22.47 8.3
Belarus 54.2 7.98 0.5 0.25 11.5
Ecuador 40.3 6.07 -1.4 1.99 -2.4
Romania 49.8 9.59 2.1 4.45 7.1
Serbia 53.5 6.35 -1.1 1.28 10.8
Panama 44.0 11.69 4.2 17.72 1.3
Turkey 46.3 12.54 5.1 25.60 3.6
Egypt, Arab Rep. 29.4 3.21 -4.3 18.23 -13.3

Sum: 897.0 157.1 0.0 525.1 0.0

Average 42.7 7.5

beta1hat= 1.83
beta0hat= 29.00
rsquared= 0.55
n 21
 uhat=Y- Yhat-
y^2 xy Yhat uhat^2 (Yhat-Ybar)^2
Yhat Ybar
80.7 5 44 8 64 1 1
10.8 10 48 -2.4 6 6 32
388.7 122.2 31.3 -8.3 69.6 -11.4 129.3
253.3 88.6 32.5 -5.7 32.5 -10.2 104.4
400.6 110.5 32.6 -9.9 97.8 -10.1 102.5
1.2 -3.6 36.7 7.1 50.4 -6.0 36.2
0.7 3.0 36.0 5.9 34.4 -6.7 44.6
22.2 21.1 34.5 3.5 12.3 -8.2 67.5
713.7 172.0 30.9 -14.9 222.1 -11.8 139.5
0.6 2.2 47.9 -4.4 19.2 5.2 26.7
309.3 -5.1 42.2 18.1 328.2 -0.5 0.3
295.3 247.3 69.1 -9.2 84.7 26.4 696.5
148.5 58.0 51.4 3.5 11.9 8.7 76.2
68.7 39.3 51.4 -0.4 0.2 8.7 75.6
131.9 5.7 43.6 10.6 111.7 0.9 0.8
5.8 3.4 40.1 0.2 0.0 -2.6 6.7
50.2 15.0 46.6 3.2 10.3 3.9 15.0
116.3 -12.2 40.6 12.9 165.3 -2.1 4.3
1.7 5.4 50.4 -6.4 41.4 7.7 59.6
12.9 18.1 52.0 -5.7 32.4 9.3 86.1
177.3 56.9 34.9 -5.5 30.1 -7.8 61.3

3190.2 963.0 897.0 0.0 1424.0 0.0 1766.2

SST SSR SSE
Simulation of Simple Regression Model

Assume: Internet_use =27 +2*GDP_capita + U

Where U is normally distributed with a mean of zero and standard deviation of 10

Assume Beta0 = 27 Assume Beta1= 2 Assume Sigma = 10

Population
******'Our Sample ****** Predicted Implicit
Internet Use GDP per capita Internet Use U for Our Sample
Y X Beta0 + Beta1*X
51.7 8.03 43.06 8.64
46 10.57 48.14 -2.14
23 1.28 29.56 -6.56
26.8 1.91 30.82 -4.02
22.7 1.96 30.92 -8.22
43.8 4.20 35.4 8.40
41.9 3.84 34.68 7.22
38 3.00 33 5.00
16 1.04 29.08 -13.08
43.5 10.30 47.6 -4.10
60.3 7.19 41.38 18.92
59.9 21.87 70.74 -10.84
54.9 12.24 51.48 3.42
51 12.22 51.44 -0.44
54.2 7.98 42.96 11.24
40.3 6.07 39.14 1.16
49.8 9.59 46.18 3.62
53.5 6.35 39.7 13.80
44 11.69 50.38 -6.38
46.3 12.54 52.08 -5.78
29.4 3.21 33.42 -4.02

15.84
0.75

Sample Slope 1.834

Sample U's ( Normal, mean 0 std 10; 200 variables 21 observations each
Sample 1 Sample 2 Sample 3 Sample 4 Sample 5 Sample 6 Sample 7 Sample 8 Sample 9
-16.9260510487 6.3505070804 -1.8734206325 12.087254521 3.6119074195 -12.3377845984 -14.4491446133 -3.5618992378 19.774374995
-4.3451288709 -6.4854233934 6.2564850003 -0.4058674903 -10.0158250519 -9.4759079254 2.2196525683 5.2352126767 2.7577318946
21.5125316179 2.8939773955 -2.4674636581 8.8181471163 3.445451756 -14.1158087423 -4.0495667787 -8.5135926123 6.0210237344
13.3707078347 16.1048405011 -3.2039426145 15.373047211 0.4341765601 7.53255064 4.7007913403 -1.1119009268 7.5127005301
-6.3403710909 8.6511520781 4.9207486781 -8.7007245475 -8.6545288846 -0.2309094864 -3.9191097579 4.1698334459 -6.0812647293
-13.1826312047 -1.9506489789 -5.0378947112 22.979381388 -1.6372315773 -3.6478512535 5.5865827816 -1.275140549 8.8629968973
4.5847426556 -6.093879645 10.9786911891 -3.2987771412 -10.1357554803 -3.8008185306 -6.4781138962 24.431587149 16.2310541531
12.5209849521 -0.3068953822 -3.5789639242 -8.2465415478 9.5749307242 -3.7372273362 4.2751826474 25.608540502 11.0355851349
3.8935655009 6.6043556977 1.1403505105 14.609742271 -3.4200350999 -1.8786669414 -17.0915829749 5.3900123278 -12.1096225569
-3.1841348567 -6.8666924009 -10.4549154232 21.720569598 1.1319037633 -8.9854409908 -4.1365796754 3.587946491 6.2584850637
2.8936840163 -6.5498030554 -0.175198352 7.0083661624 -7.1323830336 8.6174161584 9.6510373293 12.2614546885 -7.0475226057
-13.4857748026 -17.6634320707 0.362919977 -5.6231430813 14.7548720953 -18.3739810346 -4.9369103999 12.9260940697 8.9699143459
-2.3429022545 4.3435461856 -2.7193423079 -7.3152464303 -0.7592350385 -19.0291054813 11.5245149091 -1.3538638474 2.6566880644
16.530910678 5.6658343082 7.6821544132 7.3648045898 10.8948256258 2.7165285853 -6.5936736 11.9845932865 3.2404934634
2.7972301578 -15.0211851338 -2.0430937649 -11.776926034 7.6408045254 -16.6920958031 3.4640329482 1.5580169886 5.5536650404
4.8687973739 2.8222218223 21.3547697621 -2.4650563672 -3.7354636884 18.608296275 9.4447509482 -1.1589611311 1.2617570185
-10.7384476493 1.1489845908 0.5248044566 -31.734319508 2.2466056103 1.9167146905 -2.249601425 -23.1356823313 -2.908959317
-7.3714981788 3.8443411749 0.6046981372 -0.7762289203 3.3552511419 3.4960887278 5.760036893 3.1215186125 -3.9669348733
10.1200765478 -5.4016719674 2.742311008 16.304777307 26.1516538923 14.8511321062 -1.6565341344 0.0653433498 -3.4749481365
7.6162029542 -3.355606331 7.6892512429 -0.0369824376 6.136316579 3.3850469351 0.918574145 23.0522694758 -22.4628065258
16.6256869844 -4.3210430821 10.2734130644 3.4014219644 4.9082626755 -4.6690723598 -10.3751815156 -5.7839882648 -7.2045852506

Calculated Y's
Sample 1 Sample 2 Sample 3 Sample 4 Sample 5 Sample 6 Sample 7 Sample 8 Sample 9
26.1 49.4 41.2 55.1 46.7 30.7 28.6 39.5 62.8
43.8 41.7 54.4 47.7 38.1 38.7 50.4 53.4 50.9
51.1 32.5 27.1 38.4 33.0 15.4 25.5 21.0 35.6
44.2 46.9 27.6 46.2 31.3 38.4 35.5 29.7 38.3
24.6 39.6 35.8 22.2 22.3 30.7 27.0 35.1 24.8
22.2 33.4 30.4 58.4 33.8 31.8 41.0 34.1 44.3
39.3 28.6 45.7 31.4 24.5 30.9 28.2 59.1 50.9
45.5 32.7 29.4 24.8 42.6 29.3 37.3 58.6 44.0
33.0 35.7 30.2 43.7 25.7 27.2 12.0 34.5 17.0
44.4 40.7 37.1 69.3 48.7 38.6 43.5 51.2 53.9
44.3 34.8 41.2 48.4 34.2 50.0 51.0 53.6 34.3
57.3 53.1 71.1 65.1 85.5 52.4 65.8 83.7 79.7
49.1 55.8 48.8 44.2 50.7 32.5 63.0 50.1 54.1
68.0 57.1 59.1 58.8 62.3 54.2 44.8 63.4 54.7
45.8 27.9 40.9 31.2 50.6 26.3 46.4 44.5 48.5
44.0 42.0 60.5 36.7 35.4 57.7 48.6 38.0 40.4
35.4 47.3 46.7 14.4 48.4 48.1 43.9 23.0 43.3
32.3 43.5 40.3 38.9 43.1 43.2 45.5 42.8 35.7
60.5 45.0 53.1 66.7 76.5 65.2 48.7 50.4 46.9
59.7 48.7 59.8 52.0 58.2 55.5 53.0 75.1 29.6
50.0 29.1 43.7 36.8 38.3 28.8 23.0 27.6 26.2

beta_hat:
1.24 1.16 1.97 1.54 2.79 1.54 2.14 2.29 1.99

Mean of Beta Hats = 1.96

Standard Deviation of Beta Hats = 0.4228401248
Expected Standard Deviation (sigma/√(sum(x-xbar)^2)) 0.4363944704