# Provide a descriptive analysis of the two variables (e.g., mean, standard deviation, minimum…

Instructions

As an economist working in the OECD, you have been asked to prepare a short report that examines

the statistical association between average life satisfaction and GDP per capita using the data

contained in the spreadsheet (linear regression assignment data).

Your report needs to be structured as follow:

1. Purpose (2 marks)

In this section, the purpose of the report needs to be clearly and concisely stated.

2. Background (4 marks)

In this section, a brief literature review on the association between life satisfaction and GDP is

required. Why are economists interested in this particular issue?

3. Method (4 marks)

In this section, the data source and empirical approach used to examine the relationship between life

satisfaction and GDP needs to be detailed.

4. Results (20 marks)

In this section, you need to present and summarize the results from your statistical analysis. In

particular, the results section must:

? Provide a descriptive analysis of the two variables (e.g., mean, standard deviation, minimum

and maximum). Which countries have the lowest and average life satisfaction scores? Which

countries have the lowest and highest GDPs per capita? (2 marks).

? Develop a scatter diagram with GDP per capita as the independent variable. What does the

scatter diagram indicate about the relationship between the two variables? (3 marks).

? Develop and estimate a regression equation that can be used to predict average life

satisfaction given GDP per capita. (2 marks).

? State the estimated regression equation and interpret the meaning of the slope coefficient (to

make the interpretation easier multiply the estimated coefficient by 10,000). (3 marks).

? Is there a statistically significant association between GDP per capita and average life

satisfaction? What is your conclusion? (2 marks).

? Did the regression equation provide a good fit? Explain. (3 marks).

? Luxembourg, Ireland, and Norway appear to be outliers in terms of GDP per capita. Reestimate your regression model without Luxembourg, Ireland, and Norway. How does this

affect the slope coefficient and goodness of fit? Explain. (5 marks).

5. Discussion (5 marks)

In this section, provide a brief overview of the results. What are the key strengths and limitations of

this analysis? (e.g., data, method, etc.). How do the results from this analysis compare with other

studies? (e.g., are the findings consistent?). Do these findings have clear policy implications?

6. Recommendations (5 marks).

In this section, you should present three to five well-considered recommendations.