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plz give me sta301 2nd assinment solution

The Case:

 

Pakistan is blessed with uncountable natural resources but we could not utilize resources up to the mark. Overall annual Growth rate of Pakistan is positive but Pakistan was facing decline in economic growth rate in the previous government tenures, especially in 2009 it was just only 0.36%. Average growth rate was 2.82% between FY 2008 and FY 2013. Since FY 2014, Pakistan’s economy has been witnessing an impressive turnaround with GDP growth crossing 4 percent in a challenging environment. Despite these challenges, the government remained committed to achieve higher, inclusive and sustainable growth and adopted wide ranging structural reforms in all sectors of the economy. Development expenditures between FY 2008 and FY 2013 remained below 4% in first three years while after 2013, next government made development expenditures more than 5% and it is also proposed that in 2018 development expenditures will be 6.3% of GDP. Development expenditures are very important to increase the economic growth rate of the country. Data of the Annual real GDP growth rate and development expenditures is given in the following table:

 

 

 

 

 

Year

Development Expenditures:

 

Xt

Real GDP Growth Rate: Yt

Yt

Yt-Yt’=et

2013

5.1

3.7

4.475

-0.775

2014

4.9

4.1

4.385

-0.285

2015

4.2

4.1

4.070

0.030

2016

4.5

4.5

4.205

0.295

2017

5.3

5.3

4.565

0.735

Xt: Development Expenditures, Yt: Real GDP Growth Rate, Yt’: Estimated Real GDP Growth Rate and et: Error Term

Requirement:

 

  • Fill the required field in the above
  • If calculated value of “t” is greater than tabulated value of “t”, what does it mean?

Ans:

                   If the calculate value of t is more than tabulated value, it falls in the rejection region and the null hypothesis is rejected and we can say the difference between mean of sample and mean of population is significant.

Critical value or tabulated value of t is obtained at a specified level of significance for (n-I) degree for freedom.

(Marking scheme: 10+05)

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