Question - 1

 Choice of data set –

Data set includes GDP per capita data for all the countries and geographical regions. It also presents the GDP per capita as
composed of 3 sectors – Agriculture, Service and Industry and provides share of each in GDP for every country.

 Variables in Data Set

Variables Category Type

Country Categorical Nominal
Region Categorical Nominal
GDP ($ Per capita) Quantitative Numerical
Population Quantitative Numerical
Agriculture Quantitative Numerical
Industry Quantitative Numerical
Service Quantitative Numerical

Points Of interest

 Region variable is composed of 11 categories based on geographical divisions.

 Agriculture, Industry and Service variables indicate the respective share of sector in country's GDP
 For the country variable, there are 195 countries in world currently, data is for 227 as the data has included the overseas
territory of some countries as independent countries. Ex- Montserrat is identified as separate country while its British
overseas territory
 For some countries, the division of GDP between agriculture, industry and Service is unavailable.
Question -2

Following 3 critical sections of given data are analysed –

1. Variation in GDP per capita across all countries.

To achieve the objective, measures of central tendency and variance are calculated for the GDP per capita column of data
and ,then, a histogram is plotted to visualize dispersion.

Summary Statistics - GDP Per Capita

across countries

Mean 9689.823009
Standard Error 665.5074833
Median 5600
Mode 800
Standard Deviation 10026.88126
Sample Variance 100538347.8
Kurtosis 1.573584785
Skewness 1.378923894
Range 54600
Minimum 500
Maximum 55100
Sum 2199589.823
Count 227

Table (1)

Figure (1) Histogram representing the number of countries falling under various GDP per capita buckets
 Figure (2) Box plot representing the spread of GDP per capita across countries

2. Variation in GDP per capita across all regions

In order to analyse this point first average GDP of countries falling under particular geographical location is calculated and
then a bar chart is plot to visualize variation. Finally a box plot is plotted to analyse variation between GDP per capita
values within a certain geographical region

Region Avg GDP Per Capita

SUB-SAHARAN AFRICA 2323.529412
C.W. OF IND. STATES 4000
NORTHERN AFRICA 6164.970501
ASIA (EX. NEAR EAST) 8053.571429
OCEANIA 8247.619048
LATIN AMER. & CARIB 8682.222222
EASTERN EUROPE 9808.333333
NEAR EAST 10456.25
BALTICS 11300
NORTHERN AMERICA 26100
WESTERN EUROPE 27046.42857
Table (2)

Avg GDP Per Capita ($)

WESTERN EUROPE
NORTHERN AMERICA
BALTICS
NEAR EAST
EASTERN EUROPE
LATIN AMER. & CARIB
OCEANIA
ASIA (EX. NEAR EAST)
NORTHERN AFRICA
C.W. OF IND. STATES
SUB-SAHARAN AFRICA
0 5000 10000 15000 20000 25000 30000

Figure (3) Average GDP per capita across geographical regions of the world
 Figure (4) Box plot representing the spread of GDP per capita amongst various geographical regions

3. Relation between GDP per capita and dependence of economy on agriculture (represented by share of agriculture in
country’s GDP)
In order to correlate these 2 a scatter plot is plotted with share of agriculture in GDP on Y-Axis and GDP per capita on X-
Axis.

Agricultural Share in GDP vs Per Capita GDP

0.9
Share Of agriculture in GDP

0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
0 10000 20000 30000 40000 50000 60000
GDP Per capita

Figure (5) Correlation between share of agriculture in GDP and GDP per capita

Conclusions -
1. There is huge income disparity between countries and the also the income distribution is highly non-uniform.
a. We can see that the median value is considerably closer to the lowest income than to the highest,
indicating skew; the range 54,600$ appears huge, given 68 out of 227 countries have income less than
2321$
b. From the histogram and box plot we can see that there is high density of points in the lower income
region.
c. Mode is 800 (first bucket in histogram) which again represents highest number of countries per
bucket lying in the lowest income group.
 d. The incomes lower than mean fall within one Standard deviation of mean while those on the higher
side of mean extend more than 4.52 standard deviation.
e. Countries with highest GDP per capita are sort of outliers as we can see from box plot in figure(2),
even if we ignore those, we can see the distribution about mean is skewed.
2. Huge disparity exists between regions too as reflected by the bar chart in Figure(3).
a. The average GDP per capita of sub Saharan Africa is almost 10 times lower than that of affluent
western Europe.
b. From Figure (4) we can see that some regions (Baltic, North Africa) have similar GDP per capita, while
there is a huge variation in Europe and North America
3. The countries who rely more on agriculture for GDP appear to have lower incomes.
a. The scatter plot in figure (5) shows a high inverse correlation between share of agriculture in GDP to
GDP per capita.

Question -4

Prior Distribution selected -

0.05 0.15 0.2 0.3 0.2 0.1

Five pairs of (n,x) selected are as follows

1. (n=30, x=6)

2. (n=20, x=4)
3. (n=10, x=2)
4. (n=15, x=3)

5. (n=25, x=5)
Question -3