Share of the shadow economy, % GDP per capita, (1,000) € Unable to afford life expenses,...

	Share of the shadow economy, %	GDP per capita, (1,000) €	Unable to afford life expenses, %	Long term unemployment rate, %	Life satisfaction (1 to 10)	Income quintile share ratio (S80/S20)	Location: W = West, E = East, M = Mediterranian
Country	SHADOW	INCOME	UNABLE	UNEMP	SATISFACTION	RATIO	LOCATION
Belgium	16,8	30,7	25,4	3,4	7,4	3,9	W
Bulgaria	31,9	12,0	68,6	6,8	5,5	6,1	E
Czech Republic	16,0	20,7	42,4	3,0	6,4	3,5	E
Denmark	13,4	32,1	28,2	2,1	8,4	4,5	W
Germany	13,3	31,5	33,4	2,5	7,2	4,3	W
Estonia	28,2	18,2	44,7	5,5	6,3	5,4	E
Ireland	12,7	32,9	31,2	9,1	7,4	5,2	W
Greece	24,0	19,2	40,5	14,4	6,2	6,6	M
Spain	19,2	24,4	42,1	11,1	7,5	7,2	M
France	10,8	27,7	33,0	4,1	7,2	4,5	W
Croatia	29,0	15,7	67,3	10,3	6,8	5,4	E
Italy	21,6	25,6	42,5	5,7	6,9	5,5	M
Cyprus	25,6	23,6	50,5	3,6	7,2	4,7	M
Latvia	26,1	16,4	73,6	7,8	6,2	6,5	E
Lithuania	28,5	18,3	60,4	6,6	6,7	5,3	E
Luxembourg	8,2	67,1	24,8	1,6	7,8	4,1	W
Hungary	22,5	17,0	74,3	4,9	5,8	4,0	E
Malta	25,3	21,9	25,0	3,0	7,2	3,9	M
Netherlands	9,5	32,6	22,0	1,8	7,7	3,6	W
Austria	7,6	33,1	22,2	1,1	7,7	4,2	W
Poland	24,4	17,1	54,1	4,1	7,1	4,9	E
Portugal	19,4	19,4	35,9	7,7	6,8	5,8	M
Romania	29,1	12,8	53,1	3,2	6,7	6,3	E
Slovenia	23,6	21,4	45,7	4,3	7,0	3,4	E
Slovakia	15,5	19,4	36,1	9,4	6,4	3,7	E
Finland	13,3	29,4	27,9	1,6	8,1	3,7	W
Sweden	14,3	32,2	17,6	1,5	8,0	3,7	W
United Kingdom	10,1	26,8	42,9	2,7	7,3	5,4	W

Source: Eurostat
Source: On the black economy: Friedich Schneider (2013): "The Shadow Economy in Europe 2013" Universität Linz, ATKearney and VISA.

Problem 3 (20 %)
It is frequently claimed that due to structural economic issues the long term rate of
unemployment is higher in the Eastern European countries (E) and in the Mediterranean
(M) countries than in the Western European countries (W).
Examine this hypothesis by use of an ANOVA-analysis. Use the variable UNEMP divided
into three groups of countries given by the variable LOCATION.
List the assumptions of the applied method, set up the hypothesis investigated, and conduct
the test. What is the outcome of the test, and what is the p-value in the Excel output equal
to? If necessary provide a supplementary analysis, and conclude on the result.

Solutions

Expert Solution

we can run the one way anova analysis in excel as shown below , please see the below set up in excel

We enter the data in excel and then goto data > data analysis tab and then select one way anova

The p value is 0.00733

The hypothesis is

H0 : the unemployement rate is not different across the locations

H1 : the unemployement rate is different across the locations , atleast for 2 locations

as the p value is less than assumed alpha of 0.05 , hence we reject the null hypothesis in favor of alternate hypothesis to conclude that the unemployement rate is different across the locations , atleast for 2 locations

orchestra answered 2 years ago

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