STA510 Business Statistics Semester 1 Project: GDP and GFCF

This assignment analyzes the relationship between Gross Domestic Product (GDP) and Private Gross Fixed Capital Formation (GFCF) using data from the Australian Bureau of Statistics from March 1986 to December 2018. The analysis includes time series plots, histograms, and scatter plots to visualize the trends and distributions of GDP and GFCF. Descriptive statistics such as mean, standard deviation, median, and interquartile range are calculated and interpreted. A Pearson's correlation coefficient is used to assess the linear association between GDP and GFCF, revealing a strong positive correlation. Furthermore, a linear regression model is developed with GFCF as the independent variable and GDP as the dependent variable. The regression output, including the regression equation, slope coefficient, and R-squared value, is presented and interpreted to assess the impact of GFCF on GDP. The significance of the slope coefficient is evaluated using a t-test, and the overall model fit is assessed using R-squared and Root Mean Square Error (RMSE). The assignment concludes with a discussion of the findings and implications of the analysis.