/* x = average index of central bank independence (1 = little independence
         4 = very independent)   
   y = average Inflation 1955 - 1988 
   Source: Alesina and Summers (1993) Jo. of Money,
   Credit, and Banking  */

data in;
  input x y;
cards;
1.5 8.5
1 7.6
2 6.4
1.75 7.3
2 6.7
2 6.1
2.5 6.5
2 4.1
2 6.1
2 6.1
2.5 4.5
2.5 4.2
2.5 4.9
3.5 4.1
4 3
4 3.2
;

proc means data=in;
   var x y;

run;

proc reg data = in;
   model y = x;
   output residual = r pred = yhat;

run;

proc plot;
  plot y*x = '+' yhat*x = '^'/overlay;
  plot r*x;

  run;