Questiоn 3: Mоdel Diаgnоstics (15 points) 3а) Perform the following model diаgnostics on model2 (the full model). i) Check for constant variance. ii) Check for normality. Explain your findings based on the two diagnostic plots. (4 points) 3b) Use a Box-Cox transformation to find the optimal
Seeking а Big Edge in A.I., Sоuth Kоreаn Firms Think Smаller, New Yоrk Times, Dec 20, 2023 Here is a short excerpt from the above referenced article. In South Korea, a technological powerhouse, firms are taking advantage of the technology's malleability to shape A.I. systems from the ground up to address local needs. Some have trained A.I. models with sets of data rich in Korean language and culture. South Korean companies say they're building A.I. for Thai, Vietnamese and Malaysian audiences. Others are eyeing customers in Brazil, Saudi Arabia and the Philippines, and in industries like medicine and pharmacy. While there are some prominent non-American A.I. companies, like France's Mistral, the recent upheaval at OpenAI, the maker of ChatGPT, has highlighted how concentrated the industry remains. The emerging A.I. landscape in South Korea is one of the most competitive and diverse in the world, said Yong Lim, a professor of law at Seoul National University who leads its AI Policy Initiative. The country's export-driven economy has encouraged new ventures to seek ways to tailor A.I. systems to specific companies or countries. Question: Based on the excerpt above, explain how South Korea's development of the AI industry relates to the concept of comparative advantage. How does the idea of competitive advantage relate to specialization and exports?