Business Information Systems

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 STATEMENTAnalysis of the relationship between GDP per capita and Internet density for developing countries

VARIABLESIndependent- GDP per capita (in $U.S)Dependent Internet density

A PRIORI ReasoningInternet 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

HYPOTHESISNull 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 Variable- Internet density

Independent Variable- GDP per Capita

DATA TYPE: Cross sectionalhttp://data.worldbank.org/indicator/IT.NET.USER.P2/countries?page=2http://data.worldbank.org/indicator/NY.GDP.PCAP.CD/countries/1W?display=defaultDATA SOURCE

METHODOLOGYDependent variable: Internet densityIndependent variable: GDP per capita

Models Used:- Simple Linear ModelYi = + 1 Xi + uLog linear modelLn Yi = ln + 1 ln Xi + eiQuadratic model Yi = + 1x+ 2X2 + uCubic model Yi = + 1x+ 2X2 + 3X3 + uIndependent variable: Time in yearsSemi-log regression modelln Yi = +1t+ uLinear trend Yi = + 1t + u

Y - Dependent variable, X- Independent variableand u- Error term6Scatter Plot

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

Linear Model Model SummaryRR SquareAdjusted R SquareStd. Error of the Estimate.731.534.53113.247The independent variable is GDP_PerCapita.ANOVASum of SquaresdfMean SquareFSig.Regression25760.161125760.161146.794.000Residual22462.030128175.485Total48222.191129The independent variable is GDP_PerCapita.CoefficientsUnstandardized CoefficientsStandardized CoefficientstSig.BStd. ErrorBetaGDP_PerCapita.004.000.73112.116.000(Constant)10.2371.7066.001.000Quadratic ModelEquation : Internet Density = 6.91 + 5.36 E^-3*Per capita GDP + -1.11E^-7*Per Capita GDP^2

Quadratic modelModel SummaryRR SquareAdjusted R SquareStd. Error of the Estimate.750.562.55512.893The independent variable is GDP_PerCapita.ANOVASum of SquaresdfMean SquareFSig.Regression27109.954213554.97781.540.000Residual21112.237127166.238Total48222.191129The independent variable is GDP_PerCapita.CoefficientsUnstandardized CoefficientsStandardized CoefficientstSig.BStd. ErrorBetaGDP_PerCapita.005.0011.0598.189.000GDP_PerCapita ** 2-1.110E-7.000-.369-2.849.005(Constant)6.9062.0313.400.001Cubic ModelEquation : Internet Density = 1.76 + 9.65 E^-3*GDP+ -7.18 E^-7*GDP^2+ 1.96 E^-11*GDP^3

Cubic ModelModel SummaryRR SquareAdjusted R SquareStd. Error of the Estimate.772.596.58612.437The independent variable is GDP_PerCapita.ANOVASum of SquaresdfMean SquareFSig.Regression28733.76639577.92261.925.000Residual19488.425126154.670Total48222.191129The independent variable is GDP_PerCapita.CoefficientsUnstandardized CoefficientsStandardized CoefficientstSig.BStd. ErrorBetaGDP_PerCapita.010.0011.9086.577.000GDP_PerCapita ** 2-7.181E-7.000-2.386-3.758.000GDP_PerCapita ** 31.903E-11.0001.331..(Constant)1.7572.522.696.487Log-Linear ModelEquation : Log Internet Density= -3.88 + 0.85*Log GDP

Log-Linear Model Model SummaryRR SquareAdjusted R SquareStd. Error of the Estimate.789.623.620.696The independent variable is Log_GDP.ANOVASum of SquaresdfMean SquareFSig.Regression102.6651102.665211.742.000Residual62.062128.485Total164.728129The independent variable is Log_GDP.CoefficientsUnstandardized CoefficientsStandardized CoefficientstSig.BStd. ErrorBetaLog_GDP.849.058.78914.551.000(Constant)-3.884.462-8.410.000Linear trend Model for IndiaEquation : For India: Internet Density = -2.58 + 1.01 * year

Linear Trend Model for IndiaModel SummaryRR SquareAdjusted R SquareStd. Error of the Estimate.921.848.8351.869ANOVASum of SquaresdfMean SquareFSig.Regression233.9451233.94566.963.000Residual41.924123.494Total275.86913CoefficientsUnstandardized CoefficientsStandardized CoefficientstSig.BStd. ErrorBetaCase Sequence1.014.124.9218.183.000(Constant)-2.5771.055-2.442.031Semi-Log Model For India

Equation : For India: Internet Density = -0.28 + 0.11 * yearSemi-Log Model for IndiaCoefficientsUnstandardized CoefficientsStandardized CoefficientstSig.BStd. ErrorBetaCase Sequence.105.005.98822.170.000(Constant)-.277.041-6.849.000ANOVASum of SquaresdfMean SquareFSig.Regression2.53112.531491.491.000Residual.06212.005Total2.59313Model SummaryRR SquareAdjusted R SquareStd. Error of the Estimate.988.976.974.072Comparison of the modelsFINDINGS ModelAlpha()Beta1Beta2Beta3R sq.Linear10.237(.000).004(.000).534Log-Linear-3.884(.000).849(.000).623Quadratic

6.906(.001).005(.000)-1.11E^-7(.005).562Cubic1.757(.487).010(.000)-7.181 E^-7(.000)1.903E^-11(.000).596Linear Trend-2.577(.031)1.014(.000).848Semi-Log India-.277(.000).105(.000).976Cubic 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.

Conclusion Thank You!Cross SectionalDATA for the year 2012Sl.noCountryInternet users (per 100 person)GDP per capita (in million dollars)LogInternet UsersLogGDP1Afghanistan5.56881.70474809226.53378883792Albania54.74,4064.00186370948.39072252743Algeria15.25,3102.72129542798.57734711424Angola16.95,5392.82731362198.6195692585Argentina55.814,6804.02177386949.59424130226Armenia39.23,3543.66867674688.11790894247Azerbaijan54.27,3943.99268090848.90842413958Bangladesh5.87501.75785791766.62007320659Belarus46.96,7223.84801767558.813141008310Belize254,8523.21887582498.487146270111Benin4.57511.50407739686.621405651812Bhutan25.42,5093.2347491747.827639546413Bolivia35.52,5763.56953269657.853993087214Bosnia and Herzegovina65.44,3964.18052225858.388450315515Botswana11.57,2552.44234703548.889446165316Brazil48.611,3203.88362353099.334326351817Bulgaria51.97,0223.94931879028.856803356718Burkina Faso3.76521.30833281976.480044561919Burundi1.22510.18232155685.525452939120Cabo Verde34.73,5543.5467396878.175829008721Cambodia4.99451.58923520516.851184927522Cameroon5.71,2201.74046617487.106606137723Central African Republic34791.09861228876.171700597424Chad2.11,0350.74193734476.942156705725China42.36,0933.74478708618.714895850226Colombia497,7633.89182029818.957124136427Comoros68311.79175946926.722629794928Congo, Dem. Rep.1.74180.53062825116.035481432529Congo, Rep.6.13,1541.80828877128.056426767530Costa Rica47.59,4433.8607297119.153029005331Cote d'Ivoire2.41,2440.87546873747.126087273332Djibouti8.31,5752.11625551487.362010551333Dominica55.26,9134.01096295338.841158975934Dominican Republic41.25,7333.71843825648.653994232935Ecuador35.15,4253.55820113058.598773178436Egypt, Arab Rep.443,2563.78418963398.088254727137El Salvador20.33,7823.0106208868.238008249238Eritrea0.8504-0.22314355136.222576268139Ethiopia1.54670.40546510816.146329257740Fiji33.74,6133.51749783748.436633683641Gabon8.610,9302.15176220339.299266581242Gambia, The12.45102.51769647266.234410725743Georgia36.93,5293.6082115518.168769823744Ghana12.31,6462.50959926247.406103381245Grenada327,5983.46573590288.935640333746Guatemala163,3412.77258872228.114025442447Guinea1.54930.40546510816.20050917448Guinea-Bissau2.94941.0647107376.202535517249Guyana333,5853.49650756158.18451375350Haiti9.87762.28238238576.654152520251Honduras18.12,3392.89591193837.757478766652Hungary70.612,5604.25703014459.4382724453India12.61,5032.5336968147.315218389854Indonesia14.73,5512.68784749388.174984532955Iran, Islamic Rep.27.56,5783.31418600478.791486026756Iraq7.16,6251.9600947848.798605650957Jamaica33.85,4643.52046080258.605936401358Jordan414,9093.71357206678.498825534159Kazakhstan53.312,1203.97593633129.402612259660Kenya32.19333.46885603016.838405200861Kiribati10.71,7362.37024374157.459338895262Korea, Rep.84.124,4544.43200656710.104549080763Kyrgyz Republic21.71,1783.07731226057.071573364264Lao PDR10.71,4122.37024374157.252762418165Lebanon61.29,7644.11414718959.186457431566Lesotho4.61,1351.52605630357.034387929967Liberia3.84141.33500106676.025865973868Macedonia, FYR57.44,5484.05004430338.422442854969Madagascar2.14430.74193734476.0935697770Malawi4.42671.48160454095.587248658471Malaysia65.810,4324.18661983839.252633284272Maldives38.96,2443.66099425068.739376281673Mali2.26960.78845736046.545349660374Marshall Islands103,2922.3025850938.099250561875Mauritania5.41,0431.68639895366.94985645576Mauritius35.48,8623.56671182019.089527751877Mexico39.89,8183.68386691239.191972714678Micronesia, Fed. Sts.263,1553.2580965388.05674377579Moldova43.42,0473.77045944117.624130585780Mongolia16.43,6912.79728133488.21365270381Montenegro56.86,5144.03953632578.781708985882Morocco55.42,9024.01457959387.973155433483Mozambique4.85701.56861591796.345636360884Namibia12.95,9312.55722731148.687948111885Nepal11.16992.40694510836.549650742286Nicaragua13.51,7772.60268968547.482681828287Niger1.43950.33647223665.978885764988Nigeria32.82,7423.49042851547.916442860189Pakistan101,2552.3025850937.134890851690Panama40.39,9823.6963514699.2085387591Papua New Guinea3.52,1841.25276296857.688913336992Paraguay29.33,6803.3775875168.210668031293Peru38.26,4243.64283551568.767796255694Philippines36.22,5873.58905911887.858254182295Romania45.98,4373.82646511719.040382074296Rwanda86232.07944154176.434546518897Samoa12.93,6232.55722731148.195057690998Sao Tome and Principe21.61,4003.07269331477.244227515699Senegal19.21,0232.9549102796.930494766100Serbia48.15,2943.87328217718.5743293828101Seychelles47.111,6893.8522730019.3664035076102Sierra Leone1.36330.26236426456.4504704221103Solomon Islands71,8191.94591014917.5060421785104South Africa417,3143.71357206678.8975455987105Sri Lanka18.32,9222.90690105987.9800235923106St. Lucia34.87,2883.54961738688.8939844389107St. Vincent and the Grenadines47.56,3493.8607297118.7560525992108Sudan211,6953.04452243777.4354380198109Suriname34.79,3763.5467396879.1459085118110Swaziland20.83,2903.03495298678.0986428438111Tajikistan14.59532.67414864946.8596149037112Tanzania46091.38629436116.4118182677113Thailand26.55,4803.2771447338.6088603799114Timor-Leste0.91,179-0.10536051577.0724219005115Togo45891.38629436116.3784261837116Tonga34.94,4943.55248682928.4104984527117Tunisia41.44,1973.72328088088.3421252633118Turkey45.110,6613.80888224659.274347502119Turkmenistan7.26,7981.9740810268.8243837303120Tuvalu354,0443.55534806158.3049895801121Uganda14.75512.68784749386.3117348092122Ukraine35.33,8733.56388296398.2617846795123Uzbekistan36.51,7193.59731226067.4494980054124Vanuatu10.63,1832.36085400118.0655794273125Venezuela, RB49.112,7293.89385903489.4516381339126Vietnam39.51,7553.67630067197.4702241359127West Bank and Gaza43.42,5303.77045944117.8359745817128Yemen, Rep.17.41,3412.85647020627.2011708833129Zambia13.51,4632.60268968547.288244401130Zimbabwe17.19092.83907846356.8123450942

Time SeriesIndiaInternet UsersLog Internet Users20000.5-0.301029995720010.7-0.1549019620021.50.176091259120031.70.2304489214200420.301029995720052.40.380211241720062.80.4471580313200740.602059991320084.40.643452676520095.10.707570176120107.50.8750612634201110.11.0043213738201212.61.1003705451201315.11.1789769473