# 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.

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 is higher standard of living in that country, because countries with a free market economy would be able to make more money. There is an “Index of Economic Freedom”, a measure of economic freedom of different countries that was created by the Wall Street Journal. I will use the most recent data from 2008. GDP per Capita can measure how wealthy the people of a country are on average: It is the money that a country makes divided by the population. I will use the data from the World Bank and the International Monetary Fund, because their data is reliable.

First I will obtain a sample of 50 countries, by using stratified sampling by which continent they are from. To do this I will find out how many countries I need from each continent, and use a random number generator to get the countries required. There are some countries for which there is no data so they have been removed from the list.

To find out how many countries are needed from each continent I need to divide the countries in that continent by the total number of countries, and multiply that by 50 (the sample size). For example, ...