7318AFE Business Data Analytics - 24-Hour Assignment Questions

Question 1 (10 marks)

Use data from H2019.csv to answer this question. The dataset has the following variables

• Country: country name
• Hscore: happiness score (higher score implies higher degree of happiness)
• logGDP: log GDP per capita
• Freedom: freedom to make life choice (higher score implies higher degree of freedom)
• GQuality: Government Quality (higher score implies higher degree of government qaulity)

1. Classify countries with logGDP larger than 9.9 as 'Rich' countries & all others as 'not-Rich' countries. How many countries are in the Rich group? Test if the mean of Hscore for Rich countries is the same as it is of not-Rich countries. Use the 6 steps of hypothesis testing to report the testing outcomes.
2. Find the 99% confidence interval (CI) of the mean of GQuality of Rich and Not-Rich countries, separately. Present the CI formula and interpret the results.
3. Report the OLS regression results of Hscore on logGDP, Freedom, and GQuality with statsmodels for all countries. Interpret the estimated slope coefficients (the partial effects) and the R-squared.
4. Obtain the predicted Hscore based on the regression result of Part 3. Is the country with highest predicted Hscore the same as the one with highest acutal HScore? Which country's Hscore is most over-predicted? Which country's Hscore is most under-predicted?
5. Extend the regression model in Part 3 to assess if logGDP and GQuality show a synergy (complementary) effect to Hscore? Comment on the results.