Original Data of Way 1 & Way 2
- C. Nilson
This data is from General Electric’s gross investment (in millions of dollars) for years 1935 –1954. Originally presented in Grunfeld, Y. (1958), "The Determinants of Corporate Investment," Ph.D. dissertation, University of Chicago; discussed in Boot, J.C.G. (1960), "Investment Demand: An Empirical Contribution to the Aggregation Problem," International Economic Review, 1, 3-30. See also Damodar N. Gujarati, Basic Econometrics, Third Edition, 1995, McGraw-Hill, [1995, pp. 522-525]. Highlight numbers in columns A and B, then right click to Create List of Points. Resize window appropriately to see scatter plot by going to Options then Settings. In the Input Bar type, "FitLine[<list of points>]" and insert your list of points you just created. Now look up in the Algebra view the y=mx+b form of that line. (May need to right click on the equation and switch it to y=mx+b.) Type that into the Input Bar, so that Geogebra will graph it. Now, go back to the Spreadsheet view and type in C2 "=B2-f(A2)" and copy this formula to the rest of the cells in column C for the existing data. Use the Segment feature to connect the points.