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PRESENTATION ON ANALYSIS OF

DEPENDENDENCY
BETWEEN Internet Density AND GDP

By Group-6
Ankita Singh (UM14129)
Anup Kumar Patnaik (UM14131)
Archana Patange (UM14133)
Ayesha Hota (UM14134)
Bhagyashree Patra (UM14136)
Debasis Swain (UM14138)
Naved Alam (UM14149)
Neyati Bhanot (UM14150)
Shreya Subrata (UM14164)
Subhashree Patnaik(UM14171)

PROBLEM STATEMENT
Analysis of the relationship between GDP per
capita and Internet density for developing countries

VARIABLES

Independent- GDP per capita (in $U.S)


Dependent Internet density

A PRIORI Reasoning
Internet users are people with access to the worldwide network.
Internet density basically captures Internet users (per 100 people)
Gross Domestic Product (GDP) is the monetary value of all the
finished goods and services produced within a country's borders in
a specific time period.
GDP per capita is gross domestic product divided by midyear
population.
Here we are trying to establish the relationship between GDP per
capita and Internet density in developing countries

HYPOTHESIS
Null Hypothesis :
Ho : There is no relation between GDP per capita and
the Internet density in developing countries.
Alternate Hypothesis:
H1: There is a relation between GDP and the Internet
density in developing countries.

MASTER DATA

Dependent VariableInternet density


Independent VariableGDP per Capita
DATA TYPE: Cross sectional

http://data.worldbank.org/indicator/IT.NET.USER.P2/countri
es?page=2
http://data.worldbank.org/indicator/NY.GDP.PCAP.CD/countr
ies/1W?display=default

DATA SOURCE

METHODOLOGY
Dependent variable: Internet density
Independent variable: GDP per capita
Models Used: Simple Linear Model
Yi = + 1 Xi + u
Log linear model
Ln Yi = ln + 1 ln Xi + ei
Quadratic model
Yi = + 1x+ 2X2 + u
Cubic model
Yi = + 1x+ 2X2 + 3X3 + u

Independent variable:

Time in years

Semi-log regression model


ln Yi = +1t+ u
Linear trend

Yi = + 1t + u
6

Y - Dependent variable, X- Independent variable


and u- Error term

Scatter Plot

LINEAR MODEL

Equation : Internet Density = 10.24 + 3.7E^-3 * Per Capita GDP

Linear Model
Model Summary
R

R Square

Adjusted R Square

.731
.534
The independent variable is GDP_PerCapita.

.531

Std. Error of the Estimate


13.247

ANOVA
Regression
Residual
Total

Sum of Squares
25760.161

df
1

Mean Square
25760.161

22462.030

128

175.485

48222.191

129

F
146.794

Sig.
.000

The independent variable is GDP_PerCapita.


Coefficients
Standardized
Coefficients

Unstandardized Coefficients
B
GDP_PerCapita
(Constant)

Std. Error

Beta

.004

.000

10.237

1.706

.731

t
12.116
6.001

Sig.
.000
.000

Quadratic Model

Equation : Internet Density = 6.91 + 5.36 E^-3*Per capita GDP + -1.11E^-7*Per


Capita GDP^2

Quadratic model
Model Summary
R

R Square

Adjusted R Square

.750
.562
The independent variable is GDP_PerCapita.

.555

Std. Error of the Estimate


12.893

ANOVA
Regression
Residual
Total

Sum of Squares
27109.954

df
2

Mean Square
13554.977

21112.237

127

166.238

48222.191

129

F
81.540

Sig.
.000

The independent variable is GDP_PerCapita.


Coefficients

GDP_PerCapita
GDP_PerCapita ** 2
(Constant)

Unstandardized Coefficients
B
Std. Error
.005
.001
-1.110E-7
.000
6.906

2.031

Standardized
Coefficients
Beta
1.059
-.369

t
8.189
-2.849

Sig.
.000
.005

3.400

.001

Cubic Model

Equation : Internet Density = 1.76 + 9.65 E^-3*GDP+ -7.18 E^-7*GDP^2+ 1.96


E^-11*GDP^3

Cubic Model
Model Summary
R

R Square

Adjusted R Square

.772
.596
The independent variable is GDP_PerCapita.

.586

Std. Error of the Estimate


12.437

ANOVA
Regression
Residual
Total

Sum of Squares
28733.766

Mean Square
9577.922

19488.425

126

154.670

48222.191

129

The independent variable is GDP_PerCapita.

GDP_PerCapita
GDP_PerCapita ** 2
GDP_PerCapita ** 3
(Constant)

df

Sig.
.000

Coefficients

Unstandardized Coefficients
B
Std. Error
.010
.001
-7.181E-7
.000
1.903E-11
.000
1.757

F
61.925

2.522

Standardized
Coefficients
Beta
1.908
-2.386
1.331

t
6.577
-3.758
.

Sig.
.000
.000
.

.696

.487

Log-Linear Model

Equation : Log Internet Density= -3.88 + 0.85*Log GDP

Log-Linear Model
Model Summary
R

R Square

Adjusted R Square

.789
.623
The independent variable is Log_GDP.

.620

Std. Error of the Estimate


.696

ANOVA
Regression
Residual

Sum of Squares
102.665

Total

df
1

Mean Square
102.665

62.062

128

.485

164.728

129

F
211.742

Sig.
.000

The independent variable is Log_GDP.


Coefficients
Standardized
Coefficients

Unstandardized Coefficients
B

Std. Error

Beta

Log_GDP

.849

.058

(Constant)

-3.884

.462

.789

t
14.551
-8.410

Sig.
.000
.000

Linear trend Model for India

Equation : For India: Internet Density = -2.58 + 1.01 * year

Linear Trend Model for India


Model Summary
R

R Square
.921

Adjusted R Square
.848

.835

Std. Error of the Estimate


1.869

ANOVA
Regression
Residual
Total

Sum of Squares
233.945

df
1

Mean Square
233.945

41.924

12

3.494

275.869

13

F
66.963

Sig.
.000

Coefficients
Unstandardized Coefficients
B
Case Sequence
(Constant)

Std. Error

Standardized
Coefficients
Beta

1.014

.124

-2.577

1.055

t
.921

Sig.
8.183

.000

-2.442

.031

Semi-Log Model For India

Equation : For India: Internet Density = -0.28 + 0.11 * year

Semi-Log Model for India


Model Summary
R

R Square
.988

Adjusted R Square
.976

.974

Std. Error of the Estimate


.072

ANOVA
Regression
Residual
Total

Sum of Squares
2.531

df
1

Mean Square
2.531

.062

12

.005

2.593

13

F
491.491

Sig.
.000

Coefficients

Case Sequence
(Constant)

Unstandardized Coefficients
B
Std. Error
.105
.005
-.277

.041

Standardized
Coefficients
Beta
.988

t
22.170
-6.849

Sig.
.000
.000

FINDINGS
Model

Alpha()

Beta1

Beta2

Beta3

10.237
.004
Comparison
of the models
(.000)
(.000)

Linear

R sq.
.534

Log-Linear

-3.884
(.000)

.849
(.000)

.623

Quadratic

6.906
(.001)

.005
(.000)

-1.11E^-7
(.005)

Cubic

1.757
(.487)

.010
(.000)

-7.181 E^-7
(.000)

Linear Trend

-2.577
(.031)

1.014
(.000)

.848

Semi-Log
India

-.277
(.000)

.105
(.000)

.976

.562
1.903E^-11 .596
(.000)

Conclusion
Cubic model has R2 value of 0.596 signifies correlation between the
variables. All the models depict that total variation in Internet density is
explained by GDP per capita for developing countries.
Inferring from by the cubic model, there is definite relationship between
GDP per capita and Internet density.
Hence we can reject our null hypothesis and accept the alternate
hypothesis that there is significant relationship between GDP per capita
and Internet density for developing countries.

Thank You!