Data Analysis: Private Capital Expenditure and Average Yield vs Rainfall

Data analysis 1
DATA ANALYSIS
By Name
Course
Instructor
Institution
Location
Date

Data analysis 2
Question 1
(a) Below is a chart line indicating the trend of private capital expenditure during 12
quarters. Capital expenditure (in millions) appear on the Y-axis while the quarters appear
on the X-axis.
1 2 3 4 5 6 7 8 9 10 11 12
0
5000
10000
15000
20000
25000
30000
35000
40000
Line chart
Quarter
millions
Figure 1
(b) A secular trend provides a general tendency of time series data for a sustained period of
time (Wooldridge, 2015). From secular trend for our data draws a zigzag pattern
characterized by a continuous increase and decrease on private expenditure. The overall
effect of the rise and decline is stability at around 27,000 million.

Data analysis 3
(c) The chart displays a seasonal trend. The chart contains periodic peaks and lows implying
that private capital expenditure is high during some period of the year and low during
other seasons.
(d) The expenditure at period Quarter 13 is likely to be 35,000 million. Extrapolating the
graph, it is evident that, expenditure is still rising towards point 35,000 million then it
would decline in response to the season.
Question 2
a) No. There is no linear relationship between average yield and rainfall. The correlation
between the 2 variables is 0.226. However, the significance level (0.667) is greater than 0.05
implying that there exist no linear correlation between average yield and rainfall.
Test of correlations
Rainfall avarageyield
Rainfall Pearson
Correlation
1 .226
Sig. (2-tailed) .667
N 6 6
Table 1
(b) Below is a scatter plot and least squares line showing relationship between average yield and
rainfall