Question

Utilize data from your work setting or a familiar setting and analyze it. Write a report which discusses the data, the analysis, presents the findings and any conclusions as a result of the analysis.

Answer 1

Data : Indian Poverty

The primary purpose of this study is

To identify the relationship between the indicators of poverty rate in India.

To identify the unobservable factors of poverty rate.

To compare different states in India based on life poverty and its indicators.

DATA DESCRIPTION

The data consists of the major demographic indicators of India from the 2011 census year data of 28 states. Data on Human Development Index (HDI) and Income (per year) of India from the year 1990-2015 (26 years) is included. Data sources are as follows:

Data regarding poverty rate and socio-economic indicators are obtained from the official website of Reserve Bank of India (http://www.rbi.org.in).

Data regarding infant mortality rate is from the official website of Open Government Data Platform (http://www.data.gov.in).

Data regarding Human Development Index (HDI) is from the official website of United Nations Development Programme ( http://hdr.undp.org).

State wise data are obtained from Sample Registration System (SRS) Bulletin, under vital statistics division of India (http://www.censusindia.gov.in).

2011 census year data of 28 states is obtained from the handbook published by the planning commission of India-2014.

2.1 Variables under consideration

1. Poverty Rate:

The poverty rate is the ratio of the number of people who fall below the poverty line and the total population.

2. Literacy Rate:

The total percentage of the population of an area at a particular time aged seven years or above who can read and write with understanding. Here the denominator is the population aged seven years or more.

3. Sex-ratio:

For comparing the relative strength of the number of males and females in a population, the common measure used is the sex-ratio which is defined as,

Here the radix under consideration is 1000. This simple measure can adequately describe the sex composition of a population.

4. Crime rate:

An offense rate, or crime rate, defined as the number of offenses per 10,000 population, is derived by first dividing a jurisdiction's population by 10,000 and then dividing the number of offenses by the resulting figure.

5. GDP:

The monetary value of all the finished goods and services produced within a country's borders in a specific time period, though GDP is usually calculated on an annual basis.

6. Population:

Population is the totality of all human beings living at a certain time within a territory demarcated by natural, cultural or political boundaries

7. Per capita income:

Per capita income, also known as income per person, is the mean income of the people in an economic unit such as a country or city. It is calculated by taking a measure of all sources of income in the aggregate (such as GDP or Gross national income) and dividing it by the total population.

8. Unemployment rate:

The percentage of the total labor force that is unemployed but actively seeking employment and willing to work. It is calculated as a percentage by dividing the number of unemployed individuals by all individuals currently in the labor force.

9. Area:

Area of states

10. HDI:

The Human Development Index (HDI) is a composite statistic of life expectancy, education, and income indices used to rank countries into four tiers of human development.

11. Avg. house hold size

12. Infant Mortality Rate (IMR):

The infant mortality rate is defined as the chance of dying of a newly born infant within a year of its life, under the given mortality conditions, and it is given by,

IMR = × 1000

The infant mortality rate is specially important in the analysis of mortality because infant deaths account for a substantial number of all deaths, especially in those countries where health conditions are poor.

ANALYSIS OF DATA

4.1 Exploratory Data Analysis

Poverty rates of different states of India

Figure 1: poverty rate of India

From figure 1 it is evident that Uttar Pradesh has highest poverty rate (59.82) and Goa has lowest poverty rate (0.08) in India. All the states have less than 60 percentage poverty rate.

Table 1 shows minimum, maximum, mean, mode and standard deviation of all 12 variables.

Table 1

Variable

Observations

Minimum

Maximum

Mean

Std. deviation

Poverty rate

28

0.050

59.820

9.538

13.165

Literacy rate

28

61.800

94.000

77.250

9.049

Sex ratio

28

818.000

1084.000

945.857

49.497

Crime rate

28

55.100

723.200

213.346

120.786

GDP

28

11559.000

1792122.000

395524.929

427423.434

Population

28

607688.000

199281477.000

41233567.821

45623900.327

Percapita income

28

31380.000

242745.000

101277.214

49002.264

Unemployment rate

28

9.000

197.000

67.607

43.914

area

28

3702.000

342239.000

117017.893

103880.508

HDI

28

0.376

0.712

0.581

0.078

Average Household size

28

3.500

5.700

4.796

0.520

Infant mortality rate

28

3.000

54.000

33.357

13.945

REGRESSION ANALYSIS

The proposed regression model is

Where,   

Y = poverty rate

X1= literacy rate

X2=sex ratio

X3=crime rate

X4= GDP

X5= population

X6 =per capita income

X7= unemployment rate

X8= area

X9= HDI

X10= average house hold size

=infant mortality rate

Conclusion

= 1.768 – 0.021 * – 7.472E-007 * + 6.369E-009 * – 6.062E-006 * - 0.716 *

where are literacy rate, GDP, percapita income, HDI and population respectively.

, we can infer that Kerala, Goa, Tamil Nadu, Himachal Pradesh and Himachal Pradesh are the Indian states where HDI, Crime rate, Sex ratio, Literacy, Percapita income are relatively high. Population, Area, Poverty rate and GDP are comparatively high in Maharashtra, Andhra Pradesh, Gujarat, West Bengal, Madhya Pradesh, Uttar Pradesh and Karnataka. Bihar, Orissa, Assam, Jharkhand, Rajasthan, Jammu & Kashmir and Chhattisgarh are those states where Infant mortality rate, Average household size are relatively high. Mizoram, Haryana Meghalaya, Tripura, Uttarakhand, Arunachal Pradesh and Sikkim are the Indian states where unemployment rate are high