Data Analysis Skills For Economics and Accountancy - Essay Example

Data Analysis skills for Economics and Accountancy By B. Charts B1. A chart showing how the level of carbon dioxidein the atmosphere changes over time The chart above shows that as ones moves from the 1990’s to 2011, the level of CO2 in the atmosphere increases. It can be noted that this increasing trend is linear as shown by the line. For this reason a regression can explain the relationship between time and CO2 appropriately. The fitted Regression line is y = 0.005x + 186.91 From the regression line, the coefficient of x is positive further confirming a positive slope.

This slopes suggests that for a unit increase in time (moving from one month to the next), CO2 in the atmosphere increases on average by 0.005. A chart showing annual percentage change in CO2 From the chart, the annual percentage change in CO2 is not constant throughout the whole period. It depicts a seasonal variation. The annual percentage changes lie between 0.007246 and 0.084575. Summary statistics for carbon dioxide levels Measure Value Minimum 350.960 Maximum 394.340 Mean 371.230 Variance 138.

849 The summaries show that the mean atmospheric carbon dioxide is about 371.23 parts per million. The minimum and maximum are 350.960pp and 394.340pp respectively between 1990 and 2011. B2. A chart showing the relationship between unemployment rate and real house prices From the chart, there is a negative relationship between unemployment and real house prices. As unemployment increases, the real house prices decrease. A chart comparing nominal and real house prices The chart shows that nominal house prices are consistently higher than real house prices.

This is because inflation has been taken out. Summary statistics for real house prices Measure Value Minimum 40665.34 Maximum 96595.83 Mean 60482.74 The summaries show that the mean real house price is about 60482.74. Minimum and maximum prices are also given. C. Analysis of the data Chart B1 plots the monthly average atmospheric carbon dioxide levels against time. The chart suggests a positive relationship between time and level of carbon dioxide in the atmosphere i.e. as time changes to more recent years, the level of carbon dioxide increases.

From this chart we notice that while the trend is continuously increasing, there are regular peaks/troughs effects throughout the whole fit. This pattern is normally referred to as ‘earth breathing in and out’ (Bloch, n.d.). A brief possible explanation of this effect is that during autumn and winter, most vegetation sheds leaves and as they decompose, they produce carbon dioxide. Since this vegetation is a dormant state at that point it’s not able to process this excess carbon dioxide.

As a result carbon dioxide in the atmosphere rises. Likewise during spring and summer, leaves of trees grow back and carbon dioxide is consumed in the process and so carbon dioxide levels drop (Bloch, n.d.). From chart B1, it’s evident that over the years carbon dioxide has risen consistently. Over the past 150 years carbon dioxide levels in the atmosphere have considerably increased from 280 to about 380 parts per million and that is also evident with this analysis (Realclimate.org, 2004).

There are several factors researchers have pointed out to be the causes of increased carbon dioxide levels in the atmosphere over the years. Some scientists have suggested that ocean warming has resulted into increased carbon dioxide in the atmosphere. This is based on the fact that there is a lot of carbon dioxide in the oceans so when temperatures rise, this carbon dioxide is released to the atmosphere thus increasing carbon dioxide levels (Barbalace, 2006). However this idea has been criticised on the basis that if ocean warming was leading to increased carbon dioxide in the atmosphere, then an increase in atmospheric oxygen would have been observed.

This is because oxygen is also release when warm is warmed (Barbalace, 2006). Other researchers have suggested burning of fossil fuel has contributed to increase of carbon dioxide over the years. It is believed that carbon found in fossil fuels was stored in the earth over millions of years. This carbon was never released into the atmosphere because the organisms did not decay completely. This carbon was stored in the ground and when fossil fuel is burnt, the carbon dioxide that would have been release a long time ago is suddenly released into the atmosphere hence increasing its level (Barbalace, 2006).

References Barbalace, R. C., 2006. CO2 pollution and blobal warming.EnvironmentalChemistry.com. [Online] Available at: http://environmentalchemistry.com/yogi/environmental/200611CO2globalwarming.html [Accessed 15 11 2011]. Bloch, M., n.d. cabon dioxide levels. [Online] Available at: http://www.carbonify.com/carbon-dioxide-levels.htm [Accessed 16 11 2011]. Realclimate.org, 2004. How do we know that recent CO2 increases are due to human activities?. [Online] Available at: http://www.realclimate.org/index.php/archives/2004/12/how-do-we-know-that-recent-cosub2sub-increases-are-due-to-human-activities-updated/ [Accessed 16 11 2011].