ECONMOMIC ASSIGNMENT

Economic Assignment

Economic Assignment

Assignment contains GVA per worker for 255 regions of the EU.

A regression line shows the line of GVA per worker in 2003, as the dependent variable. And line of GVA per workers in 1995, as the independent variable.

This is the regression line shows the line of GVA per worker in 2003, as the dependent variable. And line of GVA per workers in 1995, as the independent variable. This line shows that it is in linear form because the points are not diverting it is in between the line.

Test the hypothesis that there has been convergence (b<1) against the null hypothesis that there has been neither convergence nor divergence (b=1) and formally state the null and alternative hypothesis B is less than 1 which shows that the data is null hypothesis.

As the significance 2 tailed is .000 which means it is less than .05 which means it is an alternate hypothesis, if the significance 2 tailed greater than .05 then it's a null hypothesis.

One-Sample Test

Test Value = 0

t

df

Sig. (2-tailed)

Mean Difference

95% Confidence Interval of the Difference

Lower

Upper

GVApw95

35.259

254

.000

33703.055

31820.59

35585.52

GVApw03

41.928

254

.000

44911.353

42801.88

47020.83

So, we can conclude this that this statement is an alternate hypothesis. And we can also say that b < 1 which means that there has been convergence. Hence we can proof this by diagram,

The two parallel lines are drawn, if the points were out from these two points, it means its showing divergence, but the points are in between the parallel, which proof that b<1.

One-Sample Statistics

N

Mean

Std. Deviation

Std. Error Mean

GVApw95

255

3.37E4

15264.212

955.882

GVApw03

255

4.49E4

17104.953

1071.154

Is the test one or two tailed? Why?

The test is two tailed because there are more than 30 observations.

Formally interpret the value of the t-statistic. The t column displays the observed t statistic for each sample, calculated as the ratio of the mean difference divided by the standard error of the sample mean. And what are the values used to calculate the numerator and denominator of the t ratio?

Generally, a T-statistics statistical sampling, which is distributed Student t distribution. More narrowly, it is often defined by taking as the statistical distribution of the samples are normally distributed, then subtract the expected value of Statistics (µk sampling distribution medium), and the apportionment of the estimate of the standard error (estimated standard deviation of the distribution of samples)the formula of T-statistics is given below:

If there is one sample T-statistic, where statistics and print one from a normal distribution, so the error is the deviation (population) standard, and estimate the error standard deviation s divided by the sample, which gives the

This sometimes referred to as the t-statistic.

What probability distribution is the t ratio referred to?

Taking one-sample position test and check whether the mean of on the whole scattered population has a value precise in a null hypothesis.

Test from a sample of the hypothesis that the means of the two populations are usually scattered on an equal balance. And called all of these tests are habitually the student T-test, but firmly speaking this name should be used and if it was also understood two population ...