Quantitative analysis techniques
Apply quantitative analysis techniques particularly predictive analytics to an empirical study relating real GDP to physical capital and
effective labor. The project requires students to analyze problems, recommend a solution, and
compose a written report.
Describe the relationship between real GDP and factors that affect it.
Develop a regression model to analyze the relationship between real GDP and a set of
selected variables;
Collect relevant data from a selected country(see list below) and apply data analytics to
empirically describe the relationship; create visualizations and tell a story.
Use the different values of the explanatory variables to real GDP.
Draw informed conclusions
• https://www.youtube.com/watch?reload=9&v=fO7g0pnWaRA
• https://www.tableau.com/learn/training
Assignment
Task 1 – Data Cleaning
The data is not provided in a suitable state. It is necessary to get the data into a proper format that
supports your analysis. You are required to prepare the data for the analysis - clean the data,
reconcile and make it ready for analysis using Excel, SPSS or Tableau.
Task 2 – Data Visualization
You will also create various visualizations using Excel or Tableau.
Task 3 – Predictive Analytics
Develop and estimate a multiple regression model to determine the relationship between real
GDP, physical capital and effective labor. The following equation will be estimated.
𝑌𝑡 = 𝐴𝐾𝑡
∝𝐿𝐻𝑡
𝛽
(1)
𝑙𝑛𝑌𝑡 = ln 𝐴 +∝ 𝐾𝑡 + 𝛽𝐿𝐻𝑡 + 𝜀𝑡
(2)
Where;
Y is the real GDP
K is physical capital
L is raw labor,
H is the index of human capital,
LH is the effective labor.
ε is the random error.
You will determine the nature of the production process by determining the magnitude of ∝ + 𝛽.
If ∝ + 𝛽 = 1, then constant returns to scale.
If ∝ + 𝛽 > 1, then increasing returns to scale
If ∝ + 𝛽< 1, then decreasing returns to scale.
Also, you can determine the return to education by estimating
𝑌𝑡 = 𝐴𝐾𝑡
∝𝐿𝑡
𝛾
𝑙𝑛𝑌𝑡 = ln 𝐴 +∝ 𝐾𝑡 + 𝛾𝐿𝑡 + 𝜖𝑡
, (3)
And then calculating
𝛽 − 𝛾.
It may be a good idea to compare an advanced country and a poor country.
Description of variables
Variable name Variable definition
Emp (L) Number of persons engaged (in millions)
Hc (H) Human capixtal index, based on years of schooling and returns to
education
Rgdpna (Real GDP) Real GDP at constant 2011 national prices (in mil. 2011US$)
Rnna (K) Capital stock at constant 2011 national prices (in mil. 2011US$)
Task 4 – Report
Write a paper to present your analysis and results which will enable governments to make sound
decisions on how to increase GDP. Use the organization and timeline provided below to
complete the project.
Each project should be at least 5 pages excluding title page, cover page and references. The
project will be organized as follows:
• Title page (Include project title and your name) (5%)
• Introduction: Problem of the propose study, purpose and justification of the study (10%)
• Data analytics – various calculations and estimations (50%)
• Interpretation of results (15%)
• Findings and conclusion. (10%)
• Appendices: Tables and Figures. (5%)
• References (5%)
The project will be written using the APA style. (https://apastyle.apa.org/index)
Project Timeline
Activity Feb. 26-28 March. 10-20 March 21-27 April 10-25
Selection of
research topic
Submission of
Badge for Big
Data
Estimation of
problem statement
Review of
conceptual
framework
Secondary data
collection
Primary data
collection
Data analysis
Discussion on the
findings
Final formatting
and submission
Appendix: Selected countries
Number Country
1 Austria
2 Belgium
3 Bulgaria
4 Canada
5 Switzerland
6 Chile
7 China
8 Colombia
9 Germany
10 Denmark
11 France
12 United Kingdom
13 Greece
14 Hungary
15 Indonesia
16 Ireland
17 Iceland
18 Israel
19 Italy
20 Jamaica
21 Japan
22 Kenya
23 Morocco
24 Norway
25 New Zealand
26 Poland
27 Portugal
28 Romania
29 Saudi Arabia
30 Sudan
31 Senegal
32 Singapore
33 Sweden
34 United States
35 Peru
Sample Solution
Purchase Nothing Year
GuidesorSubmit my paper for examination
purchase nothing for a yearToday, it appearsA to be practically outlandish that an individual can live in a major city without buyZing anything. City inhabitants are continually encompassed with numerous potential sorts of merchandise, administrations, and diversion. Without acknowledging it, individuals will in general waste critical measures of cash on practically useless buys, similar to drinks at a bar, or film tickets, or shopping. In any case, two individuals from Calgary, Canada, oversaw not exclusively to acknowledge it, yet additionally broke liberated from the hover of endless utilization. Their examination endured a year, and was known as the Buy Nothing Year.
Geoffrey Szuszkiewicz and Julie Phillips, a bookkeeper and a correspondence consultant, began to figure their benefits and consumptions; sooner or later, they understood they were spending a great deal of cash on articles and administrations they didn't require. For example, Geoffrey would spend about $150 month to month (Julie would burn through $250) on a hair style in a salon, and Julie would normally go to eateries and bars with her companions (Forbes).
Along these lines, to keep away from pointless uses, Geoffrey and Julie began to live respectively (she leased a room in his condo), and eliminated all articles they used to burn through cash on. Synthetic compounds for family errands, gas, eating out, getting hair styles in salons, and different exercises and buys individuals in Calgary become accustomed to making ended up requiring enormous measures of cash. Geoffrey and Julie looked for options; for instance, they strolled or biked as opposed to utilizing their autos. Step by step, they figured out how to live without buying things that practically any resident thinks about important; they just went to supermarkets to purchase nourishment.
At the point when the Buy Nothing Year venture had hurried to its end, Geoffrey and Julia determined their investment funds. It turned out during the year, Geoffrey had spared $42,300. Julie, in her turn, had spared $13,800. Them two state they have gotten numerous valuable aptitudes consistently: to live just on what is fundamental, thriftiness, overseeing cash, and other valuable attributes that will assist them with thinking about cash less, and center around what they like doing.
Geoffrey's and Julie's experience shows how in any event, living in a created nation, where promoting and utilization have arrived at its pinnacle, an individual can in any case stay careful and keep up power over their consumptions. Social obligations and correspondence appear to be firmly associated with going through cash—feasting out with companions, sitting in bars, setting off to the film, etc and in this way declining them might be troublesome. In any case, the results merit the hazard.
References
"The Buy Nothing Year: How Two Roommates Saved More than $55,000." Forbes. Forbes Magazine, n.d. Web. 30 Sept. 2014. .
exposition about li