INFERENTIAL STATISTICS

Inferential Statistics

Inferential Statistics

Introduction

The study relates to the inferential statistics, which particularly focuses on the data analysis pertaining to economic variables of New Zealand. Moreover, the study will help in gaining knowledge about the factors that have an effect on the gross domestic product.

Hypotheses

HO 1: There is an effect of labor productivity growth on the gross domestic product of New Zealand.

HO 2: There is an effect of total factor productivity growth on the gross domestic product of New Zealand.

HO 3: There is an effect of growth of real capital stock on the gross domestic product of New Zealand.

HO 4: There is an effect of industrial production on the gross domestic product of New Zealand.

HO 5: The GDP of New Zealand is affected by personal disposable income.

Variables

The dependent variables for the study include gross domestic product; however, the independent variables that are taken into the consideration include labor productivity growth, total factor productivity growth, growth of real capital stock, industrial production and personal disposable income.

Methodology

Data Collection

The data for the study is obtained from online source that is EIU Country Data from 1983 to 2012 for New Zealand.

Statistical Technique

For the analysis of data, regression analysis is applied to the data in order to test the hypothesis. Regression analysis is a method to create an equation that describes the relationship between two variables, the independent and the dependent variable. Regression analysis also involves estimating the value of the dependent variable by choosing a value for the independent variable. In regression analysis, a regression equation describes the relationship between two variables.

Data Analysis

Model Summary b

Model

R

R Square

Adjusted R Square

Std. Error of the Estimate

Change Statistics

Durbin- Watson

R Square Change

F Change

df 1

df 2

Sig. F Change

1

.995 a

.990

.987

.21934

.990

390.778

5

20

.000

1.136

a. Predictors: (Constant), Personal disposable income, Growth of real capital stock (%), Industrial production (% change pa), Labor productivity growth (%), Total factor productivity growth (%)

b. Dependent Variable: GDP (% real change pa)

In view of the model summary table, the value of Durbin Watson in regression analysis reflects a number that test for auto correlation in the residual. The given value of Durbin Watson is 1.136 indicating that there is an indication of no auto correlation between the gross domestic product of New Zealand which is the dependent variable with the labor productivity growth, total factor productivity growth, growth of real capital stock, industrial production and personal disposable income which are the independent variables. Furthermore, the table also shows that the R- square value is 0.99 and adjusted R- square value is 98.7% which indicates the presence of relationship of the GDP of New Zealand with the independent variables that include industrial production, total factor productivity growth, personal disposable income, growth of real capital stock and labor productivity growth. Moreover, it is important to have a thorough look at the given tables as they provide the clear understanding of the study;

ANOVA a

Model

Sum of Squares

df

Mean Square

F

Sig.

1

Regression

94.005

5

18.801

390.778

.000 b

Residual

.962

20

.048

Total

94.967

25

a. Dependent Variable: GDP (% real change pa)

b. Predictors: (Constant), Personal disposable income, Growth of real capital stock (%), Industrial production (% change pa), Labor productivity growth (%), Total factor ...