Applied Business Statistics

Applied Business Statistics
Statistics
Student name:
Tutor name:
1 | P a g e

Applied Business Statistics
QUESTION ONE
Descriptive statistics for dependent and independent variablesInterest
2019
democrati
c
Freedom of
press
property
rights
default
Mean 8.01 Mean 3.49 Mean 36.31 Mean 4.20 Mean 0.47
Std error 1.32 Std error 0.43 Std error 1.99 Std error 0.28 Std error 0.07
Median 5.92 Median 3.00 Median 31.16 Median 4.00 Median 0.00
Mode 3.00 Mode 0.00 Mode 43.13 Mode 4.00 Mode 0.00
Std dev 9.26 Std dev 3.00 Std dev 13.95 Std dev 1.97 Std dev 0.50
Variance
85.7
3 Variance 8.98 Variance
194.6
6 Variance 3.87 Variance 0.25
Kurtosis
20.7
0 Kurtosis -0.72 Kurtosis 1.18 Kurtosis -1.14 Kurtosis -2.07
Skewness 3.96 Skewness 0.62 Skewness 0.95 Skewness -0.18
Skewnes
s 0.13
Range
60.0
0 Range
10.0
0 Range 66.96 Range 6.00 Range 1.00
Minimum 0.00 Minimum 0.00 Minimum 11.33 Minimum 1.00
Minimu
m 0.00
Maximum
60.0
0 Maximum
10.0
0 Maximum 78.29 Maximum 7.00
Maximu
m 1.00
Count
49.0
0 Count
49.0
0 Count 49.00 Count
49.0
0 Count
49.0
0
Table 1
The table above is of summary statistics of all the variables. The mean interest 2019 is 8.01,
democratic is 3.49, freedom of press is 36.31 and property rights is 4.2.
Boxplot
2 | P a g e

Applied Business Statistics
defaultproperty rightsFreedom of pressdemocraticInterest 2019
80
70
60
50
40
30
20
10
0
Data
Boxplot of Interest 201, democratic, Freedom of p, property rig, ...
Figure 1
The boxplot above shows the distribution of various variables as shown. It was employed to
determine the anomalies in data such as outliers. It can be observed that there were outliers in the
variables “interest 2019” and “freedom of press”.
Correlation between the variables
Interest
2019 democratic
Freedom of
press
property
rights default
Interest 2019 1
democratic 0.090 1.000
Freedom of press 0.041 -0.347 1.000
property rights -0.144 0.415 -0.632 1.000
default 0.210 -0.015 -0.038 0.006 1
Table 2
QUESTION TWO
Theoretical model
Hypotheses
Hypothesis 1
H0: There is no relationship between cost of foreign capital and democratic.
3 | P a g e

Applied Business Statistics
H1: There is a significant relationship between cost of foreign capital and democratic.
The level of significance = 0.05
Hypothesis 2
H0: There is no relationship between cost of foreign capital and property rights.
H1: There is a significant relationship between cost of foreign capital and property rights.
The level of significance = 0.05
Hypothesis 3
H0: There is no relationship between cost of foreign capital and default.
H1: There is a significant relationship between cost of foreign capital and default.
The level of significance = 0.05
Hypothesis 3
H0: There is no relationship between cost of foreign capital and freedom of press.
H1: There is a significant relationship between cost of foreign capital and freedom of press.
The level of significance = 0.05
QUESTION THREE
Simple regression equation between the independent variable and the 4 dependent
variables
a. Simple linear regression between foreign capital and democratic
4 | P a g e