SPSS FINAL PROJECT

SPSS MEAN COMPARISON T-TESTING

FINAL TERM PROJECT

SUBMITTED BY:
IQRA ABBAS
HAFSA FAROOQ
LAIBA GUL

STATASTICAL INFERENCE
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PAIRED SAMPLE
QUESTION 3-
An economist collected 20 years’ data of inflation rate in Pakistan, and based on many
claims in the market about the significant difference in economy during martial law and
democracy, on that basis he claimed that there was a significant difference between both
the eras. Based on the data given below perform a paired T-test and answer whether the
data provide significant evidence to indicate that whether there is difference between both
the eras or not?
NOTE: ML is indicating period during Martial law, from 1999 to 2008 and column titled as
Democracy is representing era during democracy, Year 2009 to 2018

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DISCUSSION AND CONCLUSION

Looking at the result, the first table is showing descriptive statistics of each variable, including
mean, total number of sample, standard deviation and standard error of the mean. Second table is
about correlation coefficient between two variables.
Lastly the third table of inferential statistics include the data that we need in order to conclude
our result, on the far-right there is t-value, degree of freedom, and P-value that corresponds to a
t-value of -1.032, so finding whether these means are statistically significantly different have
three ways. First, is t-value is greater than the critical value? So with 9 degree of freedom CV
of the data is 2.262 means not falling in critical region. In second way, we check whether p-
value is less than 0.05? again 0.329 is greater than 0.05 and lastly we conclude by looking at the
confidence interval indicating a negative lower bound and a positive upper bound means 95%
confidence interval include 0, thereby we can finally conclude that data doesn’t provide
significant evidence to indicate that there is a difference between martial law and democracy era
hence we fail to reject null hypothesis.
QUESTION 1-
According the economic survey of Pakistan, the average inflation rate in 40 years of
economy was 9%. Hereby a sample of 15 years’ inflation rate is given below, perform a t-
test and conclude whether there is a difference between both the averages or not?

13.0 10.8 11.8 7.8 5.7 3.6 4.4 3.5 3.1 4.6 9.3 7.9 7.8 12.0 19.6

T-TEST

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CONCLUSION
The first table is all the descriptive statistics including means, standard deviation and standard
error, the second table that is of our interest, here by looking at the p-value we can find out
whether a mean is significantly different from other mean or not. the t-value while comparing
from the critical value of 2.145 showing that it does fall in to rejection region but the p-value is
greater than significant value and there is also a zero between the confidence interval so we can
conclude that there is no significant difference between both the means.

QUESTION 3
A US economist researching about the micro variable forces impact on inflation forces,
taken the 10 similar years’ data of inflation rate of Pakistan and India, looking at the
growing economy of India economist believe that is a significant difference between both
the countries inflation rate. Perform a test and conclude whether the economist estimation
has a significant evidence or not?

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CONCLUSION
The first table is related to the descriptive statistics, telling about both the countries mean
inflation rate, standard deviation and standard error. In second table from where we’re going to
conclude the result, firstly there is a Levene’s Test for equality of variance, if the f value in the
first column is above then 0.05 then we’ll look at the above row where equal variances are
assumed, but here its less than 0.05 therefore we’ll be looking at the bottom row. Judging by
significant level our p-value is greater than 5%, also there is 0 in 95% confidence interval and
lastly the crtical region is 2.101, means our t value is not falling into rejection level. Hereby we
can conclude that there is no significant evidence to proof that there is difference between both
the countries inflation rate.

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