Statistical Analysis of Infrastructure Budget and Private-Public

Partnership Investment on Gross Domestic Product

Infrastructure Budget and Gross Domestic Product

t-Test: Paired Two Sample for Means

Variable 1 Variable 2
Mean 3.45 336.9609375
Variance 3.241333 273224.6129
Observations 16 16
Pearson Correlation 0.065611
Hypothesized Mean Difference 0
df 15
t Stat -2.55274
P(T<=t) one-tail 0.011039
t Critical one-tail 1.75305
P(T<=t) two-tail 0.022078
t Critical two-tail 2.13145

State the null and alternative hypothesis

H₀: There is no significant relationship between Infrastructure Budget and Gross

Domestic Product.

H₁: There is a significant relationship between Infrastructure Budget and Gross

Domestic Product.

Compute for the value of t using the formula:

t= -2. 55

Compare the computed value of t with the critical value of t

Using df= n-2= 16-2= 14, level of significance= 0.05, two tailed test, the
researchers get from the table of t-values that the critical value of t is 2.13.
Decision
 Since the computed value of t= -2.55 is less than the critical value of t which is
2.13, the researchers accept the null hypothesis. So, they find out there is no significant
relationship between Infrastructure Budget and Gross Domestic Product.

Summarize the results

The researchers conclude that there is no relationship between Infrastructure
Budget and Gross Domestic Product.

PEARSON CORRELATION

Pearson product-moment correlation coefficient is a measure of the strength of

the linear relationship between two variables. It is referred to as Pearson's correlation or
simply as the correlation coefficient. If the relationship between the variables is not
linear, then the correlation coefficient does not adequately represent the strength of the
relationship between the variables.

The symbol for Pearson's correlation is "ρ" when it is measured in the population and "r"
when it is measured in a sample. Because we will be dealing almost exclusively with
samples, we will use r to represent Pearson's correlation unless otherwise noted.

Pearson's r can range from -1 to 1. An r of -1 indicates a perfect negative linear

relationship between variables, an r of 0 indicates no linear relationship between
variables, and an r of 1 indicates a perfect positive linear relationship between variables.

Moreover, from the data, the Pearson Correlation is computed at 0.07 which indicates
No relationship. As one value increases, there is no tendency for the other value to
change in a specific direction.

Private-Public Partnership Investment and Gross Domestic Product

t-Test: Paired Two Sample for Means

Variable 1 Variable 2
Mean 0.6 336.9609
Variance 0.337333333 273224.6
Observations 16 16
Pearson Correlation 0.270815267
Hypothesized Mean Difference 0
df 15
t Stat -2.574756081
P(T<=t) one-tail 0.010566871
t Critical one-tail 1.753050356
P(T<=t) two-tail 0.021133742
t Critical two-tail 2.131449546

State the null and alternative hypothesis

H₀: There is no significant relationship between Private-Public Partnership Investment

and Gross Domestic Product.

H₁: There is a significant relationship between Private-Public Partnership Investment

and Gross Domestic Product.

Compute for the value of t using the formula:

t= -2.57

Compare the computed value of t with the critical value of t

Using df= n-2= 16-2= 14, level of significance= 0.05, two tailed test, the
researchers get from the table of t-values that the critical value of t is 2.13.

Decision

Since the computed value of t= -2.57 is less than the critical value of t which is
2.13, the researchers accept the null hypothesis. So, they find out there is no significant
relationship between Private-Public Partnership Investment and Gross Domestic
Product.

Summarize the results

The researchers conclude that there is no relationship between Private-Public

Partnership Investment and Gross Domestic Product.

PEARSON CORRELATION

Moreover, the Pearson Correlation is computed at 0.27 which indicates Low

Degree. It is said to be small correlation.
REGRESSION
Linear Regression

Linear regression is used to determine the extent to which there is a linear

relation between a dependent and independent variable. A linear regression is defined

by this equation: y= a+bx

Where,

x1 and x2 is the independent variable

 y is the dependent variable

a is the y-intercept or the fixed cost because its value is the point at which the

line crosses the y-axis

b is the slope of the line or the variable cost since it tells how much each unit

change the independent variable x that changes the dependent variable y

Relationship between Infrastructure Budget and Gross Domestic Product in Asia

2015

SUMMARY OUTPUT X1 & Y

Regression Statistics

Multiple R 0.065611387

R Square 0.004304854

Adjusted R Square -0.066816228

Standard Error 539.889295

Observations 16

It includes the correlation coefficient (Multiple R) which tells how strong the linear

relationship is between the data. In this case, the value of the output is .07. This

suggests that the Infrastructure Budget, which is the x and the Gross Domestic Product

in Asia which is the y, indicates No Relationship or No Correlation. The value of the R

square referred to as the Coefficient of Determination shows how many points fall on
the regression line. The table shows a value of 0, as one value increases, there is no

tendency for the other value to change in a specific direction. Adjusted R-square shows

a value of -.07, which means the total sum of squares is very low or negligible. So,

Negative Adjusted R Square means insignificance of explanatory variables. Standard

error of regression represents the absolute measure of the average variance of the

observed values from the regression line. In this case, the standard error of regression

results to 539.89, which means that the larger the standard error of estimate, the

greater the scattering of points around the regression line. Moreover, the number of

observations of the data totaled to 16.

ANOVA

df SS MS F Significance F

Regression 1 17642.8813 17642.8813 0.060528523 0.809232886

Residual 14 4080726.312 291480.4509

Total 15 4098369.193

It shows the analysis of the variance of the data. Significance F indicates the

probability that the output could have been obtained by chance. Based on the output,

the significance f resulted to 0.80 means that there are only 8% chance that the

regression output was a result of mere chance of occurrence.

Coefficients Standard t Stat P-value Lower Upper Lower Upper

Error 95% 95% 95.0% 95.0%
Intercept 271.2411162 299.2889 0.90628 0.3801 - 913.15 - 913.15
656 5053 18901 370.669 21055 370.669 21055
8732 8732
X Variable 19.04922357 77.42785 0.24602 0.8092 - 185.11 - 185.11
1 696 5453 32886 147.017 54604 147.017 54604
0133 0133

y = 19.05 + 271.24x

Relationship between Private-Public Partnership Investment and Gross Domestic

Product

SUMMARY OUTPUT X2 & Y

Regression Statistics
Multiple R 0.270815267

R Square 0.073340909

Adjusted R Square 0.007150974

Standard Error 520.8366259

Observations 16

It includes the correlation coefficient (Multiple R) which tells how strong the linear

relationship is between the data. In this case, the value of the output is .27. This

suggests that the Private-Public Partnership, which is the x and the Gross Domestic

Product in Asia which is the y, indicates Low Degree Relation. The value of the R

square referred to as the Coefficient of Determination shows how many points fall on

the regression line. The table shows a value of 0.07, as one value increases, there is no

tendency for the other value to change in a specific direction. Adjusted R-square shows

a value of 0, which means the total sum of squares, is equal to zero. So, there is zero

error if you just estimate the mean value. Standard error of regression represents the

absolute measure of the average variance of the observed values from the regression

line. In this case, the standard error of regression results to 520.84, which means that

the larger the standard error of estimate, the greater the scattering of points around the

regression line. Moreover, the number of observations of the data totaled to 16.

ANOVA

df SS MS F Significance

F
Regression 1 300578.1215 300578.121 1.1080371 0.31033889

5 78 7

Residual 14 3797791.072 271270.790

Total 15 4098369.193

It shows the analysis of the variance of the data. Significance F indicates the

probability that the output could have been obtained by chance. Based on the output,

the significance f resulted to 0.31 means that there are only 31% chance that the

regression output was a result of mere chance of occurrence.

Coefficient Standar t Stat P-value Lower Upper Lower Upper

s d Error 95% 95% 95.0% 95.0%

Interce 190.72481 190.405 1.00167 0.33349 - 599.104 - 599.104

pt 1 679 6064 9607 217.654 3766 217.654 3766

7546 7546

X 243.72687 231.540 1.05263 0.31033 - 740.331 - 740.331

Variabl 75 1223 3449 8897 252.877 0495 252.877 0495

e1 2945 2945

y = 243.73 + 190.72x
Relationship between Infrastructure Budget and Private-Public Partnership

Investment and Gross Domestic Product

Regression Statistics

Multiple R 0.348826171

R Square 0.121679697

Adjusted R Square -0.013446503

Standard Error 526.2114865

Observations 16

It includes the correlation coefficient (Multiple R) which tells how strong the linear

relationship is between the data. In this case, the value of the output is .35. This

suggests that the Infrastructure Budget, which is the x1 and Private-Public Partnership

Investment and the Gross Domestic Product in Asia which is the y, indicates Moderately

Low Relationship. The value of the R square referred to as the Coefficient of

Determination shows how many points fall on the regression line. The table shows a

value of .12, which implies that the change in GDP is influenced by Infrastructure

Budget and Private-Public Partnership Investment by 12%. Adjusted R-square shows a

value of -.01, which means the total sum of squares is very low or negligible. So,

Negative Adjusted R Square means insignificance of explanatory variables. Standard

error of regression represents the absolute measure of the average variance of the

observed values from the regression line. In this case, the standard error of regression

results to 526.21, which means that the larger the standard error of estimate, the
greater the scattering of points around the regression line. Moreover, the number of

observations of the data totaled to 16.

ANOVA

df SS MS F Significance

Regression 2 498688.3232 249344.161 0.9004892 0.43027289

6 98 8

Residual 13 3599680.87 276898.528

Total 15 4098369.193

It shows the analysis of the variance of the data. Significance F indicates the

probability that the output could have been obtained by chance. Based on the output,

the significance f resulted to 0.43 means that there are only 43% chance that the

regression output was a result of mere chance of occurrence.

Coefficients Standard t Stat P-value Lower Upper Lower Upper

Error 95% 95% 95.0% 95.0%

Intercept 391.6626917 305.6795 1.28128 0.2224 - 1052.0 - 1052.0

837 5086 77567 268.717 43283 268.717 43283

 8999 8999

X Variable -99.12700363 117.1922 - 0.4129 - 154.05 - 154.05

1 473 0.84584 35479 352.305 14543 352.305 14543

9499 4615 4615

X Variable 478.8106806 363.2713 1.31805 0.2102 - 1263.6 - 1263.6

2 111 2557 39613 305.989 10635 305.989 10635

2738 2738

y = 99.13 + 478.81 + 391.66x