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• Level: GCSE
• Subject: Maths
• Word count: 1174

# Statistics Coursework. I am going to study the wealth of countries in the world (GDP) and what affects this. Hypothesis 1: Countries with a higher Index of Economic Freedom have a higher GDP per capita.

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Introduction

Statistics Coursework

Topic: Wealth of countries:

I am going to study the wealth of countries in the world (GDP) and what affects this. In today’s world there is a lot of difference in rich and poor countries and I am going to do my coursework on this topic. I will investigate 3 hypotheses. I’ll use secondary data on GDP from sources such as the World Bank.

Hypothesis 1: Countries with a higher Index of Economic Freedom have a higher GDP per capita.

Hypothesis 2: Countries in the Northern Hemisphere have a higher GDP per capita on average than countries in the Southern Hemisphere.

Hypothesis 3: On average the GDP of countries today are higher than they were 5 years ago.

Hypothesis 1: Countries with a higher economic freedom have a higher GDP per Capita

A higher economic freedom will probably mean there

Middle

79.2

56,427

7

1

36

Djibouti

52.3

996

39.5

36

12.25

55.4

3,312

32

27

25

Georgia

69.2

2,315

13

31

324

Germany

71.2

40,079

10

8

4

Greece

60.1

32,166

21

12

81

Guinea

52.8

487

36.5

45

72.25

Haiti

48.9

638

42

43

1

India

54.2

1,042

35

33

4

Israel

66.1

22,563

16

14

4

Italy

62.5

35,494

20

9

121

Ivory Coast

54.9

1,016

34

34

0

Japan

72.5

34,254

9

10

1

Kenya

59.6

786

23

41

324

Korea, North

3.0

1,114

50

32

324

Kuwait

68.3

33,687

14.5

11

12.25

Latvia

68.3

11,931

14.5

17

6.25

Conclusion

79.5

44,693

6

6

0

United States

80.6

45,790

1

5

16

Uzbekistan

52.3

830

39.5

40

0.25

Venezuela

45.0

8,303

44

21

529

Mean

59.7

14854.0

Σd²

7231.5

Σd² = 7231.5

6 x 7231.5 = 43389

n is the number of countries in my sample, 50.

n(n²-1)

50(50²-1)

50 x 2499

= 124950

rs = 1 – (43389/124950)

rs = 1 – 0.347

rs = 0.653

Therefore there is a positive correlation which is quite strong. On average countries with more economic freedom do indeed have a higher GDP per capita. However there are many countries, mainly in Africa concentrated at the lower end below \$2000 GDP per capita, so the data is very positively skewed. The mean is low for both economic freedom and GDP Per capita. There are very countries with an index of economic freedom below 40, and these countries have a higher GDP per capita than countries with an index of economic freedom between 50 and 60 which is unusual. These are probably the countries with a communist government. The countries with the highest GDP per Capita also have very high economic freedom, and the countries with very low GDP per capita have less economic freedom, which proves the hypothesis correct, with some exceptions such as communist countries.

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