SUBJECT ANALYSED: THE RELATIONSHIP BETWEEN GROSS DOMESTIC PRODUCT AND HUMAN DEVELOPMENT INDEX in 41 COUNTRIES
MIHAILA MIOARA 25%
PETRE ALEXANDRA 25%
SIMION LAURENTIU 25%
TARIUC MONICA 25%
MANAGEMENT of INTERNATIONAL PROJECTS
Record 40 - 60 data for two statistical variables (X and Y) at your choice.
I. For each of the two variables:
a) Calculate and interpret the average, standard deviation and the coefficient of variation for row data. Interpret the results. Is the data series homogenous?
b) Summarize the data in an appropriate number of classes. Construct the frequency distribution.
c) Calculate and interpret for the frequency distribution the average, standard deviation and coefficient of variance. Compare with the results from point a). Explain the differences.
d) Construct a histogram and describe the shape of the distribution based on the histogram.
e) In which interval is expected that about 95% of the data will fall? Is this assumption true for this data?
II. Using the "Pivot Table Wizard" in EXCEL, build a pivot table on your spreadsheet (using also the second variable). You may have to change the order of the rows (You should define the intervals first using VLookup function.
III. Calculate the regression line and interpret and test the regression coefficients, coefficient of determination and coefficient of correlation. Interpret the results.
We chose for analysis a sample of 41 countries, considering the relationship between the following two variables: the Human Development Index(HDI) and the Gross Product per Capita (GDP). The values are extracted from a report provided by the World Bank in 2008.
The gross domestic product (GDP) or gross domestic income (GDI) is a basic measure of a country's economic performance and is the market value of all final goods and services made within the borders of a country in a year. It is a fundamental measurement of production and is very often positively correlated with the standard of living, though its use as a stand-in for measuring progress in increasing the standard of living has come under increasing criticism and many countries are actively exploring alternative measures. GDP can be defined in three ways, all of which are conceptually identical. First, it is equal to the total expenditures for all final goods and services produced within the country in a stipulated period of time (usually a 365-day year). Second, it is equal to the sum of the value added at every stage of production (the intermediate stages) by all the industries within a country, plus taxes less subsidies on products, in the period. Third, it is equal to the sum of the income generated by production in the country in the period--that is, compensation of employees, taxes on production and imports less subsidies, and gross operating surplus (or profits).