STATISTICAL ANALYSIS

Statistical Analysis



Statistical Analysis

Introduction

This SPSS data set contains data on 132 countries of the world (i.e. those for which reasonable data exist - the ones missing are the very smallest states and those with very poor data). All together there are eight variables, but for the analysis we have taken four scale variables. Theses variables are described below:

The Gross National Income per capita (a measure of per capita wealth) in US dollars for the year 1999. - gnpcap

Population (in millions) - popn

Percentage of GDP accounted for by agriculture, forestry and fisheries. - Agric

Foreign debt expressed as a percentage of the country's income (i.e. Gross National Product). - debt

Descriptive statistics

Descriptive statistics refers to the collection, presentation, description, analysis and interpretation of a collection of data, essentially is to summarize these with one or two pieces of information (descriptive measures) that characterize all of them.

The table below (see appendix) shows the descriptive statistics for our data set, it can be seen that the average Gross National Income per capita is 6037.69 dollars for the year 1999. Gross National Income (GNI) is the total value of all goods and services produced within a year in the state (that is, gross domestic product, GDP), plus income earned by citizens of the country from abroad, minus income, left the country by foreigners. It is one of the key indicators of economic development.

GNI of a country can be significantly less than GDP if much of the income received by the country's export from foreign companies or citizens. There is a huge difference between the minimum and maximum value of the GNI, which shows the difference between the developed and underdeveloped countries. Singapore and Hong Knong are the ones that have the lowest GNI, whereas, Switzerland has the highest GNI.

The statistics shows that average population of the country is 43.74 in million; Estonia is the least populated country with the overall population of 1 million people. While, China is the most populus country of the world contributing 1250 million people in the world population.

Foreign debt which is expressed as debt in the data set shows that the mean debt is 50.14%, it can be seen that all the developed countries of the world have 0 debts while, Congo and Angola have shared the highest debts in the world.

Hypothesis

The predictors i.e. Agric and debt have a significant impact on the Gross National Income per capita.

Multiple Regressions

Multiple regressions are a general and flexible statistical method for analyzing associations between two or more independent variables and a single dependent variable. As a general statistical technique, multiple regressions can be employed to predict values of a particular variable based on knowledge of its association with known values of other variables, and it can be used to test scientific hypotheses about whether and to what extent certain independent variables explain variation in a dependent variable of interest.

Prediction

Multiple regressions are most commonly used to predict values of a criterion variable based on linear associations with predictor ...