STATISTICAL ANALYSIS

Statistical Analysis

Statistical Analysis

Question 1

(a) Natural Log of the US's Per Capita Income relative to that in 1960

In context of, natural log of the US's per capita income relative to that in 1960, the natural logarithm is one that uses the numbers as a basis, it is fundamental in mathematical analysis because it is the inverse function of the exponential function. Besides it, there are various factors that can affect the US's per capita income relative to 1960 which involves economic indicators.

(b) and (c)

Dependent variable

The dependent variable that is used in the study is;

GDPGR which shows the average annual growth rate (%) of real income per worker for the country (1960 to 1985)

Independent variable

The independent variables that are used in the study are;

GDP60VUS which shows the natural log of a country's per capita income in 1960 relative to that in the United States in 1960

EQUIPINV which shows the equipment investment as a proportion of real GDP for the country (annual average for the period 1960 to 1985 also expressed as a percentage)

LFGR6085 which shows the average annual growth rate (%) of the country's labour force



Descriptive Statistics

Mean

Std. Deviation

N

series gdp growth per worker growth rate 1960 - 1985

2.0432080E0

1.65818018

88

natural log of GDP relative to US in 1960

- 1.7993692E0

.92479902

88

equipment investment 1960 - 1985

3.9271707E0

3.35130886

88

labor force growth rate 1960 - 1985

2.0742432E0

.87326017

88

The result of the descriptive table is showing the mean of the all the variables that are used in analyzing the data and the data of the study is comprised of 88 countries who belong to different continents. The most important values of the above table are the means and the standard deviations of the variables are important to study as these values are providing the accuracy of the data which has been gathered. From the above table, it is observed that the standard deviation of the equipment investment 1960 to 1985 is high as compared to the other variables.

Correlations

series gdp growth per worker growth rate 1960 - 1985

natural log of GDP relative to US in 1960

equipment investment 1960 - 1985

labor force growth rate 1960 - 1985

Pearson Correlation

series gdp growth per worker growth rate 1960 - 1985

1.000

.110

.587

- .078

natural log of GDP relative to US in 1960

.110

1.000

.540

- .252

equipment investment 1960 - 1985

.587

.540

1.000

- .250

labor force growth rate 1960 - 1985

- .078

- .252

- .250

1.000

Sig. (1 - tailed)

series gdp growth per worker growth rate 1960 - 1985

.

.155

.000

.234

natural log of GDP relative to US in 1960

.155

.

.000

.009

equipment investment 1960 - 1985

.000

.000

.

.010

labor force growth rate 1960 - 1985

.234

.009

.010

.

N

series gdp growth per worker growth rate 1960 - 1985

88

88

88

88

natural log of GDP relative to US in 1960

88

88

88

88

equipment investment 1960 - 1985

88

88

88

88

labor force growth rate 1960 - 1985

88

88

88

88

The above result for the data shows that there is correlation between series gdp growth per worker growth rate 1960 to 1985 with the equipment investment 1960 to 1985. In addition to this, the value of the Pearson correlation coefficient shows that the value is in positive that is - 0.587 as the value of Pearson correlation coefficient is significant that is it is are less than ...