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Education level vs. GDP per capital (Analysis) - Essay Example

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In social sciences, correlation coefficient represent the relationship that exists between variables, for examples, if the correlation coefficient is +1 then the two variables in question are perfectly related (significantly) in a positive linear sense. However, if the…
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Education level vs. GDP per capital (Analysis)
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Download file to see previous pages From the table above, there is less than 5 years of elementary school and the GDP are perfectly negatively correlated. There is a relatively strong correlation between 4 or more years of college and GDP per capita than there is between high school completion or higher and the GDP per capita. This means that those who have less than 5 years elementary education contribute less to the country’s GDP per capita as compared to high school completion and 4 or more years of college. The longer one takes in learning, the higher they contribute to the GDP per capita.
From the regression analysis output above, the equation of the model is y = -1129498.874 +583.606*Year. This is to show that there is a significant relationship between the GDP and the education level as years spent in school is part of the model formula.
Based on the four years moving average of the country’s gdp above, it is healthy to assume that the country’s GDP is improving exponentially over the years with the forecasted GDP almost meeting the actual GDP (Corder, &, Foreman, 35)
Even though the data provides that there is a strong correlation between education level and the gdp, IT is imperative to note that the GDP as it is, is a wide econometric term used to refer to a number of variables. Therefore, the relationship between the educational levels and the GDP may be assumed correct in the light of the data but not in real life scenarios. One is likely to realize that the GDP alone to be strongly correlated to the other macroeconomic factors than just educational level. It is therefore important to conduct anon parametric analysis on the other variable before making a concrete conclusion (Spearman, ...Download file to see next pagesRead More
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