examining country level data across 63 countries

Word Limit: Max. 1500 words excluding appendices, figures and tables.
Weight: 20% of overall final grade.
Details:
This is an  INDIVIDUAL Assignment  and while we discourage plagiarism, it is not collusion if
you discuss the questions with other students but submit your own original work. Note that
we  may  request  you  come  in  and  explain  your  assignment  in  person  if  we  feel  your
assignment is too similar to another students’ work.
In this assignment, you will be examining country level data across 63 countries   chosen at
random.  In  particular,  we  are  interested  in  the  determinants  of  a  country’s  economic
wellbeing.  You will not need a working knowledge of macro-economics  for this assignment
but it doesn’t hurt.  The assignment will mainly involve quantitatively analysing the data and
you may  also need to do some research on some questions through your textbook or other
online resources.
Data:
The  data  along with data definitions are  provided in the file  MAE356_t2_2014_Assign.XLSX
which is provided via Cloud Deakin. Where possible, data has been sourced from the World
Bank Database (data.worldbank.org) for the year 2011.
Submission Details:
Once  completed,  you  will  need  to  submit  the  your  ‘Microsoft  Word’  document  via  Cloud
Deakin.  You  must  submit  a  single  file  only  and  do  not  need  to  fill  out  an  assignment
attachment sheet but should contain a cover page with your name and student ID.
Please do not  submit it as a PDF as we will be doing a word count. Any tables, figures and
appendices will not be included in the word count so use them wisely.
We will not be marking your Excel work file  so you must ensure  the Word document  is  selfcontained  (i.e.  all  your  tables  and  figures  should  be  in  the

word  document).  You  will  not
need to submit a hardcopy.
Part 1: Descriptive Statistics and Hypothesis Testing.
a)  Using Excel, compute and present the descriptive statistics for petrol prices. Based
off your results, calculate the 95% confidence interval and explain it.
b)  Using  Excel,  compute  and  present  the  descriptive  statistics  for  the  average  life
expectancy of a country’s population. Given that this is only a sample of 63 countries
in  the  world  and  using  a  1%  level  of  significance,  test  the  null  hypothesis  that  the
average life expectancy of the entire world is more than or equal to 65 versus the
alternative that it is less than 65.
[2 + 3 = 5 Marks]
Part 2:  Simple Linear Regression Analysis and Hypothesis Testing
a)  Run the following simple linear regression function on  the number of scientific and
technical journal articles and tertiary enrolment rates.  Present your regression table
along  with  the  interpretation  of  the  intercept  and  slope  coefficients.  Additionally,
conduct a hypothesis test to see if  tertiary enrolment rate has  no effect  on  journal
article  publications  versus  it  having  a  positive  effect.  Show  all  steps  for  the
hypothesis test and use       .
b)  Run  the  following  simple  linear  regression  function  on  GDP  per  Capita  and  life
expectancy.  Present  your  regression  table  along  with  the  interpretation  of  the
intercept  and  slope  coefficients.  Additionally,  conduct  a  hypothesis  test  to  see  if
having 5 extra  year of  life expectancy  could increase GDP per capita by more than
$20,000. Show all steps for the hypothesis test and use       .
[3 + 3 = 6 Marks]
Part 3:  Multiple Regression Analysis and Hypothesis Testing
a)  Estimate  the  following  multiple  regression  and  present  your  results .  Carefully
interpret  the  estimated  intercept  and  slope  coefficients  along  with  the  R-sq.
coefficient.
b)  Based  on  the  multiple  regression  results  you  had  in  Part  3a,  test  the  joint
significance  of  the  variables  INFLATION,  ARTICLE  and  POP  on  GDP.  Show  your
steps/calculation and use       .
[5 + 4 = 9 Marks]
END OF ASSIGNMENT