Private Gross Fixed Capital Formation as a Predictor of Australian GDP

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COMPUTER APPLICATIONS ASSIGNMENT
by Student’s Name
Code + Name of Course
Professor’s Name
University
City (State)
Date

2
1. The table below is a screenshot of the first 10 rows of the sheet containing the data to be
analyzed for this assignment problem (Australian Bureau of Statistics, 2019).
2. Graphical descriptive techniques
a. Movements of the data series
Graphical display if the change in GFCF with change in time.
From the graph displayed above it can be concluded that the amount of GFCF has
been on an increasing trend from March 1986 to may 2008. From2008 to 2018 the
data do have a level trend with minimal increase and decrease in between.

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Graphical display of the change in GDP overtime
Looking at the graph if the GDP values from 1986 to 2017 shown above its evident
that the GDP of Australia have been on an increasing trend for the 85 years period.
From just below $ 100000 million in 1989 the GDP of the country surpassed $
500000 million as of November 2017.
b. The relationship between GFCF and GDP
To analyze the relationship between the variables GFCF and GDP, a scatter plot was
drawn as displayed in the figure below.
When the line of best fit was derived the value of R squared was obtained as
0.7643. This value indicates a strong positive relationship between GFCF and GDP. It