Data Descriptive Statistics and Visualization - Assignment Example

BRUNEL BUSINESS SCHOOL COVERSHEET FOR ONLINE WORK S Module MG2602 Module Quantitative Methods in Business and Management Module leader Dr Emel Aktas Student ID number Student name I understand that the School does not tolerate plagiarism.  Plagiarism is the knowing or reckless presentation of another person’s thoughts, writings, inventions, as one’s own. It includes the incorporation of another person’s work from published or unpublished sources, without indicating that the material is derived from those sources. It includes the use of material obtained from the internet. (Senate Regulations 6.46) I confirm that I adhere to the School’s Policy on plagiarism.  Continue writing your coursework on the next page. Alternatively, if you have already written your coursework in another document, copy and paste the content of your coursework from your document within this file. Table of Contents Introduction 3 Data Overview 3 Data Descriptive Statistics and Visualization 4 Hypothesis Testing 8 Linear Correlation and Regression 9 Correlation Analysis 9 Test of correlation between the life expectancy at birth and the inflation rate 11 Regression Analysis 12 Conclusion 13 Bibliography 14 Data Sources 14 Appendix A: Raw Data 15 MG2602 Coursework Paper 2013-14 Introduction The Organisation for Economic Co-operation and Development (OECD), founded in 1961, is an international economic organization dedicated to the global development. The mission of the OECD is to promote policies that will improve the economic and the social well-being of the people around the world. Initially in 1960, there were 18 European countries along with the United States and Canada, which joined hands to form an organization. Today, there are 34 member countries across the globe, including nationals from America, Europe and Asia-Pacific region. The OECD also works with emerging giants like China, India and Brazil and developing economics in Africa, Asia, Latin America and Caribbean to build a stronger, cleaner and fairer world. This report examines the life expectancy at birth in the OECD countries to see if there exists a difference in the life expectancy at birth between males and females in the OECD countries. Furthermore, this report will also examine whether there is an effect of economic indicators such as inflation rate, unemployment rate and gross domestic product on the life expectancy at birth in the OECD countries. The main hypotheses investigated are: 1. Is there any difference in the life expectancy at birth between males and females in the OECD countries? 2. Is there any relationship between the life expectancy at birth and the economic indicators such as inflation rate, unemployment rate and gross domestic product in the OECD countries? Data Overview The data are collected from the OECD Statistics database. The data are collected for the year 2011. There are four variables in the dataset; inflation rate, unemployment rate, gross domestic product and life expectancy at birth (total, males and females). All the variables are numerical variables measured on a ratio scale. There are 34 observations in the data. Table 1 summarizes about the data. Table 1: data overview Variable Publication Date Nature of Variable Source Inflation rate 04 Feb 2014 Numerical Price indices, Main Economic Indicators (database) GDP 11 Feb 2014 Numerical Annual national accounts: Gross domestic product, OECD National Accounts Statistics (database) Unemployment rate 11 Dec 2012 Numerical Labour force statistics, Main Economic Indicators (database) Life expectancy at birth -Total population 06 Dec 2013 Numerical OECD Health Data: Health status: OECD Health Statistics (database) -Females 10 Dec 2013 Numerical -Males 06 Dec 2013 Numerical Data Descriptive Statistics and Visualization Table 2 shows the summary statistics for the dataset. Table 2: Summary statistics (n = 34)   Inflation Rate (%) GDP (Billions of US dollars) Unemployment rate (%) Life expectancy at birth (in years) Total Female Male Mean 3.12 1310.41 8.27 80.07 82.79 77.30 Median 3.32 377.57 7.47 80.87 83.25 78.35 Mode --- --- --- 81.10 81.10 79.40 Std. Deviation 1.26 2713.81 4.09 2.45 2.17 2.92 Variance 1.58 7364786.95 16.75 6.00 4.69 8.50 Kurtosis 2.07 24.23 2.62 0.34 1.20 0.05 Skewness -0.40 4.66 1.50 -1.18 -1.14 -1.14 Range 6.76 15521.61 18.34 8.60 8.80 9.50 Minimum -0.28 12.19 3.30 74.20 77.10 71.20 Maximum 6.47 15533.80 21.64 82.80 85.90 80.70 The average inflation rate in the OECD countries in the year 2011 was 3.12% and vary from the mean by about 1.26%. About half of the OECD country’s inflation rate was above 3.32%. The range of inflation rate was 6.76% with maximum inflation rate being 6.47% for the Turkey and minimum inflation rate being -0.28% for the Japan. The distribution of inflation rate is approximately normally distributed (Skew = -0.40). Figure 1 shows the histogram of inflation rate in the OECD countries in the year 2011. Figure 1 also confirms that the distribution of inflation rate is approximately normally distributed. Figure 1: Histogram of inflation rate in the OECD countries in year 2011 The average GDP of the OECD countries in the year 2011 was USD1,310 billion and vary from the mean by about USD 2,714 billion. About half of the OECD country’s GDP was greater than USD 378 billion. The range of GDP was USD 15,522 billion, with maximum GDP is USD 15,534 billion in the United States and minimum GDP is USD 12.19 billion in the Iceland. The distribution of GDP is highly positively skewed (Skew = 4.66). Figure 2 shows the histogram of GDP for the OECD countries in the year 2011. Figure 2 also confirms that the distribution of GDP is highly positively skewed. Figure 2: Histogram of GDP for the OECD countries in year 2011 The average unemployment rate in the OECD countries in the year 2011 was 8.27% and vary from the mean by about 4.09%. About half of the OECD country’s unemployment rate was above 7.47%. The range of unemployment rate was 18.34% with maximum unemployment rate being 21.64% for the Spain and the minimum unemployment rate being 3.30% for the Norway. The distribution of the unemployment rate is positively skewed (Skew = 1.50). Figure 3 shows the histogram of unemployment rate in the OECD countries in the year 2011. Figure 3 also confirms that the distribution of the unemployment rate is positively skewed. Figure 3: Histogram of unemployment rate in the OECD countries in year 2011 The average life expectancy at birth for the total population in the OECD countries in the year 2011 was 80.07 years and varied from the mean by about 2.45 years. About half of the OECD country’s life expectancy at birth was above 80.87 years. The range of life expectancy at birth was 8.60 years with maximum life expectancy at birth being 82.80 years for the Switzerland and minimum life expectancy at birth being 74.20 years for the Mexico. The distribution of life expectancy at birth is negatively skewed (Skew = -1.18). Figure 4 shows the histogram of life expectancy at birth of total population in the OECD countries in the year 2011. Figure 4 also confirms that the distribution of life expectancy at birth is negatively skewed. Figure 4: Histogram of life expectancy at birth (total population) in the OECD countries in year 2011 The average life expectancy at birth of females in the OECD countries in the year 2011 was 82.79 years and varied from the mean by about 2.17 years. About half of the OECD country’s life expectancy at birth of females was above 83.25 years. The range of life expectancy at birth of females was 8.80 years with maximum life expectancy at birth of females being 85.90 years of the Japan and minimum life expectancy at birth of females being 77.10 years for the Turkey. The distribution of life expectancy at birth of females is negatively skewed (Skew = -1.14). The average life expectancy at birth of males in the OECD countries in the year 2011 was 77.30 years and varied from the mean by about 2.92 years. About half of the OECD country’s life expectancy at birth of males was above 78.35 years. The range of life expectancy at birth of males was 9.50 years with maximum life expectancy at birth of males being 80.70 years for the Iceland and minimum life expectancy at birth of males being 71.20 years for the Mexico. The distribution of life expectancy at birth of males is negatively skewed (Skew = -1.14). Thus, there appears that there is a difference in the life expectancy at birth between males and females in the OECD countries. Life expectancy at birth of females appears to be higher as compared to the males. Hypothesis Testing The research question examined is: “Is there any difference in the life expectancy at birth between males and females in the OECD countries?” The null and alternate hypotheses tested are: H0: μFemale = μMale or D = 0 (D = Female – Male) H0: μFemale ≠ μMale or D ≠ 0 The selected test is Two-Sample t Test for Population Mean (dependent samples). This is because population standard deviations are unknown, sample size (n = 34 > 30) is large and samples are related samples. We will assume that the population is approximately normal given sample size is greater than 30. The selected level of significance, α is 0.05 (or 5%). The results of the hypothesis test using Excel are presented in table 3. Table 3: Dependent samples t-test for difference in life expectancy at birth between males and females t-Test: Paired Two Sample for Means   Female Male Mean 82.788 77.302 Variance 4.689 8.503 Observations 34 34 Pearson Correlation 0.864 Hypothesized Mean Difference 0 df 33 t Stat 21.166 P(T Read More