Question 1
Data on “Urban Population (UP)” of a country and the “GDP” of the same country are collected. The “GDP” is captured as a percentage (that is “10.5%” is captured as “10.5”) and the “UP” is captured in crores of people (that is “1,20,00,000” is captured as “1.2”). From the raw data, the analyst has identified that the relation is non-linear. Hence, the analyst applies a natural logarithmic transformation on both variables (the independent variable is “GDP” and the dependent variable is “UP”). The transformed data is modelled as a Simple Linear Regression and the developed model is presented in Figure-1. Using this information, answer the given subquestions.
How many degrees of freedom will be present for the “Regression” term in the ANOVA table (nomenclature as per excel)?