# What determines how long we live? You are required to perform a statistical analysis in…

What determines how long we live? You are required to perform a statistical analysis in order to answer this question by estimating the relationship between Life expectancy at birth and some of its determinants.

Collecting the Data:

Go to http://data.worldbank.org/ .

Click on the option By Country on the left-hand side of the page. Select a country from the list. For this country, collect the data on (i) Life expectancy at birth (years), (ii) Literacy Rate (% of people ages 15 and above), (iii) Infrastructure (% of rural population with access to water) and (iv) Gross National Income per capita. Write down the data on a new Excel spreadsheet.

Repeat the process to acquire the data for a total of 30 randomly selected countries.

Make sure that this newly created dataset does not contain any non-numeric element. Save this Excel file.

Methodology

You will use EViews to perform the computing. You will need the hand-outs given to you in the classes.

Declare a (30 X 1) matrix Y which represents the data on Life Expectancy

Declare a (30 X 4) matrix X as follows:

The first (30 X 1) column contains only the number 1.

The second (30 X 1) column represents the data on Literacy Rate

The third (30 X 1) column represents the data on Infrastructure and

The fourth (30 X 1) column represents the data on Gross National Income per capita

Questions:

Calculate the matrix (X’X)-1X’Y (10 Marks)

Run the regression of Life Expectancy on a constant, Literacy Rate, Infrastructure and Gross National Income. (10 Marks)

Use the generated regression output in Question 2 above to test the hypothesis that

Gross National Income per capita has no effect on Life Expectancy at birth. (40 Marks)

Infrastructure has a positive effect on Life Expectancy at birth. (40 Marks)

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EC1011 Resit Coursework

Coursework Objective:

What determines how long we live? You are required to perform a statistical analysis in order to answer this question by estimating the relationship between Life expectancy at birth and some of its determinants.

Collecting the Data:

Go to http://data.worldbank.org/ .

Click on the option By Country on the left-hand side of the page. Select a country from the list. For this country, collect the data on (i) Life expectancy at birth (years), (ii) Literacy Rate (% of people ages 15 and above), (iii) Infrastructure (% of rural population with access to water) and (iv) Gross National Income per capita. Write down the data on a new Excel spreadsheet.

Repeat the process to acquire the data for a total of 30 randomly selected countries.

Make sure that this newly created dataset does not contain any non-numeric element. Save this Excel file.

Methodology

You will use EViews to perform the computing. You will need the hand-outs given to you in the classes.

Declare a (30 X 1) matrix Y which represents the data on Life Expectancy

Declare a (30 X 4) matrix X as follows:

The first (30 X 1) column contains only the number 1.

The second (30 X 1) column represents the data on Literacy Rate

The third (30 X 1) column represents the data on Infrastructure and

The fourth (30 X 1) column represents the data on Gross National Income per capita

Questions:

Calculate the matrix (X’X)-1X’Y (10 Marks)

Run the regression of Life Expectancy on a constant, Literacy Rate, Infrastructure and Gross National Income. (10 Marks)

Use the generated regression output in Question 2 above to test the hypothesis that

Gross National Income per capita has no effect on Life Expectancy at birth. (40 Marks)

Infrastructure has a positive effect on Life Expectancy at birth. (40 Marks)

Note: For Question 3 above, you must fully explain your answer and show all workings. You are advised to follow the method…

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