Solution
Pooja answered on
Apr 05 2021
Table of Contents
Literature review 2
Sampling and Experimental Design 2
Data analysis 2
Descriptive 3
Inferential 4
Results 6
Recommendations and further work 6
References 7
Appendix 8
Literature review
The top 10 economies of the world are the United States, China, Japan, Germany, United Kingdom, India, France, Italy, Brazil, and Canada. I want to analyse if there is any significant difference in the average growth rate between the United States, China, Japan, Germany, the United Kingdom, and India.Â
According to a recent article by CCN, India and China are surpassing United States Economy by the 2030 year. It is also predicted that the United States will fall to third place. China & India are Surpassing US' Economy By 2030. (2019, January 13).
Sampling and Experimental Design
The data is obtained with the help of secondary research. The source of the data is worldbank.com. The data is considered for 47 years from 1971 until the year 2017. The method of cluster sampling is used for the purpose of Data Collection. There are numerous clusters in this case co
esponding to the country of the United States, China, Japan, Germany, the United Kingdom, and India.
This is a type of matched pair experimental design. An effort is made in order to match the year of each country what is the growth of the gross domestic product.
Data analysis
The dependent variable is the growth of the gross domestic product. This is measured by the ratio scale of measurement and is a continuous variable. The independent variable is the countries. The countries are measured by the nominal scale of measurement. The considered countries are the levels of the independent variable.
Descriptive
The line chart depicting the gross domestic product for the considered 7 countries from the year 1971 until the year 2017 is given below.
The growth of GDP for China has been the highest since 1977 until the cu
ent year. An exception is seen in 1999 where the gross domestic product of India was slightly higher in comparison to China. The year of 2015 is also noticeable and the gross domestic product of India was greater than that of China. In the year of 2010 the gross domestic product of India and China approximately equal.
It is also evident that in the recession year of 2008 and 2009 India and China unaffected as the Gross Domestic Product was greater than zero. However, all other countries like United States, Japan, Germany, and the United Kingdom were drastically affected by the recession. It is evident that at the gross domestic product for the country of the United States, Japan, Germany, United Kingdom were in the range of - 3 to - 6%
Inferential
Consider the null hypothesis, there is no significant difference in the average growth of gross domestic product between the seven types of countries. This is tested against an alternative hypothesis, is that at least one of the average growth of gross domestic product between the seven types of countries differ significantly. Girden, E. R. (1992).Â
The level of significance is set at 5%. This indicates that I am 95% confident about my results.
ANOVA: Single Facto
SUMMARY
Groups
Count
Sum
Average
Variance
United States
47
131.3615954
2.794927562
4.0879
China
47
419.351527
8.922372915
10.5755
Japan
47
117.8168518
2.506741527
6.6481
Germany
47
94.21806535
2.004639688
3.8394
United Kingdom
47
105.5385567
2.245501206
4.4415
India
47
265.7702293
5.654685729
8.9514
ANOVA
Source of Variation
SS
df
MS
F
P-value
F crit
Between Groups
1772.2159
5
354.4432
55.1752
0.0000
2.2467
Within Groups
1773.0127
276
6.4240
Total
3545.2286
281
Level of significance
0.05
The decision rule is to reject the null hypothesis if P-value is less than 5%. However if the value is greater than 5%, the null hypothesis is retained and 5% level of significance.
With F=821575.2840, p<5%, I reject the null hypothesis at 5% level of significance. There is sufficient evidence to conclude that at least one of the average growth of the Gross Domestic Product between the seven types of countries significantly. Gu, C. (2013).Â
Now to check which pair of countries differ significantly with respect to the average growth of GDP, a turkey crammer t-test is applied.
If P-value is less than 5%, I can say that the specific pair differ significantly with respect to the mean. Wilcox, R. R. (2011).Â
Tukey-Kramer Multiple Comparisons
Sample
Sample
Group
Mean
Size
1: United States
2.794928
47
2: China
8.922373
47
3: Japan
2.506742
47
4: Germany
2.00464
47
5: United Kingdom
2.245501
47
6: India
5.654686
47
Other Data
Level of significance
0.05
Numerator d.f.
6
Denominator d.f.
276
MSW
6.423959
Q Statistic
4.109
Absolute
Std. E
o
Critical
Comparison
Difference
of Difference
Range
Results
Group 1 to Group 2
6.127445
0.369702559
1.519
Means are different
Group 1 to Group 3
0.288186
0.369702559
1.519
Means are not different
Group 1 to Group 4
0.790288
0.369702559
1.519
Means are not...