Quantitative analysis techniques

          Apply quantitative analysis techniques particularly predictive analytics to an empirical study relating real GDP to physical capital and effective labor. The project requires students to analyze problems, recommend a solution, and compose a written report.  Describe the relationship between real GDP and factors that affect it.  Develop a regression model to analyze the relationship between real GDP and a set of selected variables;  Collect relevant data from a selected country(see list below) and apply data analytics to empirically describe the relationship; create visualizations and tell a story.  Use the different values of the explanatory variables to real GDP.  Draw informed conclusions • https://www.youtube.com/watch?reload=9&v=fO7g0pnWaRA • https://www.tableau.com/learn/training Assignment Task 1 – Data Cleaning The data is not provided in a suitable state. It is necessary to get the data into a proper format that supports your analysis. You are required to prepare the data for the analysis - clean the data, reconcile and make it ready for analysis using Excel, SPSS or Tableau. Task 2 – Data Visualization You will also create various visualizations using Excel or Tableau. Task 3 – Predictive Analytics Develop and estimate a multiple regression model to determine the relationship between real GDP, physical capital and effective labor. The following equation will be estimated. 𝑌𝑡 = 𝐴𝐾𝑡 ∝𝐿𝐻𝑡 𝛽 (1) 𝑙𝑛𝑌𝑡 = ln 𝐴 +∝ 𝐾𝑡 + 𝛽𝐿𝐻𝑡 + 𝜀𝑡 (2) Where; Y is the real GDP K is physical capital L is raw labor, H is the index of human capital, LH is the effective labor. ε is the random error. You will determine the nature of the production process by determining the magnitude of ∝ + 𝛽. If ∝ + 𝛽 = 1, then constant returns to scale. If ∝ + 𝛽 > 1, then increasing returns to scale If ∝ + 𝛽< 1, then decreasing returns to scale. Also, you can determine the return to education by estimating 𝑌𝑡 = 𝐴𝐾𝑡 ∝𝐿𝑡 𝛾 𝑙𝑛𝑌𝑡 = ln 𝐴 +∝ 𝐾𝑡 + 𝛾𝐿𝑡 + 𝜖𝑡 , (3) And then calculating 𝛽 − 𝛾. It may be a good idea to compare an advanced country and a poor country. Description of variables Variable name Variable definition Emp (L) Number of persons engaged (in millions) Hc (H) Human capixtal index, based on years of schooling and returns to education Rgdpna (Real GDP) Real GDP at constant 2011 national prices (in mil. 2011US$) Rnna (K) Capital stock at constant 2011 national prices (in mil. 2011US$) Task 4 – Report Write a paper to present your analysis and results which will enable governments to make sound decisions on how to increase GDP. Use the organization and timeline provided below to complete the project. Each project should be at least 5 pages excluding title page, cover page and references. The project will be organized as follows: • Title page (Include project title and your name) (5%) • Introduction: Problem of the propose study, purpose and justification of the study (10%) • Data analytics – various calculations and estimations (50%) • Interpretation of results (15%) • Findings and conclusion. (10%) • Appendices: Tables and Figures. (5%) • References (5%) The project will be written using the APA style. (https://apastyle.apa.org/index) Project Timeline Activity Feb. 26-28 March. 10-20 March 21-27 April 10-25 Selection of research topic Submission of Badge for Big Data Estimation of problem statement Review of conceptual framework Secondary data collection Primary data collection Data analysis Discussion on the findings Final formatting and submission Appendix: Selected countries Number Country 1 Austria 2 Belgium 3 Bulgaria 4 Canada 5 Switzerland 6 Chile 7 China 8 Colombia 9 Germany 10 Denmark 11 France 12 United Kingdom 13 Greece 14 Hungary 15 Indonesia 16 Ireland 17 Iceland 18 Israel 19 Italy 20 Jamaica 21 Japan 22 Kenya 23 Morocco 24 Norway 25 New Zealand 26 Poland 27 Portugal 28 Romania 29 Saudi Arabia 30 Sudan 31 Senegal 32 Singapore 33 Sweden 34 United States 35 Peru