Finance GDP Critical Analysis 2022

Running head: FINANCE
Finance
Name of the Student
Name of the University
Course ID

FINANCE1
Table of Contents
Question i.........................................................................................................................................2
Question ii........................................................................................................................................3
Question iii.......................................................................................................................................4
Question iv.......................................................................................................................................5
Question v........................................................................................................................................6
Question vi.......................................................................................................................................8
Question vii......................................................................................................................................9
Question viii...................................................................................................................................10
Question ix.....................................................................................................................................12
Bibliography..................................................................................................................................14

FINANCE2
Question i
Table 1: Summary statistics of Real GDP, Population and Total Medals
Summary statistics of the variables suggest that average real GDP for the time period is
137726.66 million dollars. Standard deviation as estimated from the series of real GDP is
548622. 2. The standard deviation for the series is larger than mean GDP indicating that the
series is highly volatile in nature. During the taken period minimum real GDP is recorded to be
46 million dollars and that of maximum real GDP is recorded to be 7280000 million dollars.
Average population for the time period is 27.54 million dollars. Standard deviation as
estimated from the series of population is 93.50. The standard deviation for the series far exceeds
mean population indicating that the series is highly volatile in nature. During the taken period
minimum population is recorded to be 0.1 million and that of maximum population is recorded to
be 1220 million dollars.
Average number of total medals from the descriptive statistics is obtained as 5. Standard
deviation for the total medal series is 16.17. The standard deviation for the series is larger than

FINANCE3
mean number of medals indicating that the series varies widely during the sample period. The
highest and lowest number of total medals are 195 and 0 respectively.
Question ii
Total Medals=β0 + β1 realGDP+u
Table 2: Regression result of Total Medals and Real GDP
The estimated regression equation from the above regression result can be expressed as
Total Medals=2.458184+ 0.000019realGDP
The coefficient of regression indicates impact of a unit change in real GDP on total
medals obtained by the nation. The estimated coefficient is 0.000019. Positive regression
coefficient implies there is a positive impact of real GDP on total number of medals. That is
countries with a higher GDP are likely to receive more medals and vice-versa.
Question iii