Category Archives: Economics

Types of statistical techniques for data analysis

Data Analysis can be defined as the process of reviewing and evaluating the data that is gathered from different sources.  Data cleaning is very important as this will help in eliminating the redundant information and reaching to the accurate conclusions. Data analysis is the systematic process of cleaning, inspecting and transforming data with the help of various tools and techniques. The objective of data analysis is to identify the useful information which will support the decision-making process. There are various methods for data analysis which includes data mining, data visualisation and Business Intelligence. Analysis of data will help in summarising the results through examination and interpretation of the useful information. Data analysis helps in determining the quality of data and developing the answers to the questions which are of use to the researcher.

In order to discover the solution of the problem and to reach to the specific and quality results, various statistical techniques can be applied. These techniques will help the researcher to get accurate results by drawing relationships between different variables. The statistical techniques can mainly be divided into two a) Parametric test and b) non-parametric test.

Parametric test

Parametric statistics considers that the sample data relies on certain fixed parameters. It takes into consideration the properties of the population. It assumes that the sample data is collected from the population and population is normally distributed. There are equal chances of occurrence of all the data present in the population. The parametric test is based on various assumptions which are needed to be holding good. Various parametric tests are Analysis of Variance (ANOVA), Z test, T test, Chi Square test, Pearson’s coefficient of correlation, Regression analysis.

T- Test

T- test can be defined as the test which helps in identifying the significant level of difference in a sample mean or between the means of two samples. It is also called as a T- Distribution. The t-test is conducted when the sample size of the population is small, and variance of the population is not known. The t-test is used when the population (n) is not larger than 30. There are two types of T-Test:

  1. Dependent mean T Test- It is used when same variables or groups are experimented.
  2. Independent mean T Test-It is used when two different groups experimented. The two different groups have faced different conditions.

The formula for T-Test is:-

Z Test

This test is used when the population is normally distributed. The sample size of the population is large or small, but the variance of the population is known. It is used for comparing the means of the population or for identifying the significance level of difference between the means of two independent samples. Z test is based on the single critical value which makes the test more convenient.

The formula for z test is:-

X- Main value

µ – Sample Mean

σ – Standard Deviation

Analysis of Variance (ANOVA)

When there are two or more categorical data, then Analysis of Variance is used. Analysis of variance can be mainly of two types a) one-way ANOVA, b) Two-way ANOVA. One way ANOVA is used when the mean of three or more than three groups are compared. The variables in each group are same. Two-way ANOVA is used to discover if there is any relationship between two independent variables and dependent variables. Analysis of Variance is based on many assumptions. ANOVA assumes that there is a dependent variable which can be measured at continuous intervals. There are independent variables which are categorical, and there should be at least two categories. It also assumes that the population is normally distributed and there is no unusual element is present.

Chi Square test

This test is also known as Pearson’s chi-square test. This test is used to find a relationship between two or more independent categorical variables. The two variables should be measured at the categorical level and should consist of two or more independent groups.

Coefficient of Correlation

Pearson’s coefficient of correlation is used to draw an association between two variables. It is denoted by ‘r’. The value of r ranges between +1 to -1. The coefficient of correlation is used to identify whether there is a positive association, negative association or no association between two variables. When the value is 0, it indicates that there is no association between two variables. When it is less than 0, it indicates a negative association, and when the value is more than 0, then it indicates a positive association.

Regression Analysis

This is used to measure the value of one variable which is based on the value of another variable. The variable whose value is predicted is the dependent variable, and the variable which is used to predict the value of another variable is called independent variable. The assumptions of regression analysis are that the variables should be measured at the continuous level and there should be a linear relationship between two variables.

Non-parametric Tests

Non-Parametric Statistics does not take into account any assumption relating to the parameters of the population. It explains that data is ordinal and is not necessary to be normally distributed. The non-parametric test is also known as a distribution-free test. These tests are comparatively simpler than the parametric test. Various non-parametric tests include Fisher- Irwin Test, Wilcoxon Matched –Pairs Test (Signed rank test), Wilcoxon rank-sum test, Kruskal- Wallis Test, Spearman’s Rank Correlation test.

Conclusion

Thus it can be said that there are many statistical tools that help in data analysis. These tools help the researcher in getting accurate results from the data collected. They help in discovering the answers to the question. As these statistical tools are complex and not easy to use it is very necessary that the researcher is having full knowledge of these tools so that they can implement them properly to get the correct results.

Shared economy and millennial – changing the startup scene in the UK

Sharing economy can be defined as the socio-economic system which is used to describe the social and economic activities. Shared economy is also known as peer economy, collaborative consumption or share economy. The shared economy can also be defined as the online platforms through which the people share the resources and get access to the assets. Nesta has estimated that around one-fourth of the adult population of the United Kingdom have shared their resources and got access to their assets over the internet. Further, it has been calculated by PwC that the value of the sharing economy of the entire country is around 9 billions of pounds. This value has been aimed to be increased up to 230 billions of pounds by the year 2025. PwC has also said that around three-fourth of the entire population of the UK would share their assets with each other if it were suitable and simple for them. There are lots of opportunities for most of the businesses and entrepreneurs as well for sharing their assets over the internet.

eco-copy The shared economy of the United Kingdom is completely driven by the millennial because the millennial does not look at the albums and the scrapbooks like the old generation people. Instead, the millennial just goes to the Facebook profiles of their friends and check out the memories from the past years. Thus, the millennial is completely different from the older generation people. Apart from this, millennial also has the sharing behaviours in the workplaces. Thus, the rise of the millennial has resulted in the better and more sharing economy. Hence, it would not be wrong to say that more the millennial in the country, more the value of shared economy of the country. It has been found that most of the people on the board of sharing economy are the millennial. Thus, the majority of the sharing economy of the United Kingdom is driven because of the millennial only. Hence, it would also be very appropriate to say assume that the shared economy of the United Kingdom would be almost worthless if the millennial is removed from the country.

The sharing economy of the United Kingdom appears to have important tractions among all the people in the country who frequently use the internet. It has also been found that most of the internet users in the United Kingdom have tried for at least once for sharing their assets over the internet. Out of these internet users, most of the people were the millennial which means that the younger are showing much more interest in the shared economy than the aged people. Thus, the sharing economy has increased a lot among the young people in the UK and also it has changed the start-up scene in the country. The increased usage of sharing economy over the internet is bringing positive change to the start-ups in the UK.

The sharing economy is completely related to peer to peer because the people interact face to face in sharing economy for sharing their assets and there is no mediator. This person to person direct interaction has increased a lot among the people of the United Kingdom over the past few years. The sharing economy has increased in many of the fields such as mobility, food, education, home and office, leisure/travel and much more. The rapid increase of sharing economy among the people has proven that it is really a very good idea which has connected many of the people in the UK.

The shared economy in the United Kingdom has benefited many of the young people and the start-up businesses. For example; there are many of the old businesses in the United Kingdom that have stopped using their assets because of several reasons. The revenue generation from those assets has also fallen to zero. The young people and the start-up businesses have implemented on such an idea that they have utilised those start-ups of the old companies. This utilisation has brought a two-way benefit for both of the businesses because the start-up business has found a valuable asset and the old business has started generating revenue again from their assets. Thus, it can be said that sharing the assets among two or more businesses or companies have benefited the start-up businesses a lot. Hence, the sharing economy in the United Kingdom has become much popular among the young people as it has changed the entire scenario of the start-up businesses in the United Kingdom.

There has been a huge rise in the peer to peer businesses in the United Kingdom over the past few years which has motivated the young and altered the startup scene in the country. Uber and Airbnd are the two of the mostly used online sharing platforms that have grown at such a higher level. Also, there is a huge contribution to the sharing economy in the GDP of the United Kingdom. The historical models of overall consumption in the United Kingdom have also changed because of the rise in the shared economy in the country. The United Kingdom has modified into such a country where access trumps the ownership nowadays. This has all happened because of the reason that the sharing economy over the internet has increased a lot in the United Kingdom, and the young people are implementing this idea very frequently.

The start-up businesses as well as the settled up businesses have started growing even faster than before in the United Kingdom. The growth rate of these businesses has increased only because of the reason that they have implemented on the idea of sharing their aspects with each other. It has been found that the size of the shared economy of the United Kingdom has reached to billions of pounds with most of the business shared their assets. Further, it has also been estimated that the size of the shared economy of the United Kingdom will reach to trillions of pounds in the coming years. The graph of the growth rate of the businesses in the United Kingdom has provided the positive results for the country. This means that the growth of the country has never decreased because of the sharing economy behaviour among the businesses in the United Kingdom.

The millennial in the United Kingdom has utilised the idea of sharing economy in such a way that has helped them to grow their businesses at higher rates. The productivity of the start-up businesses has also increased because of the sharing economy technique in the country. Thus, it can be said that the sharing economy of the United Kingdom is surely on the right track. Most of the business models of the start-up businesses in the United Kingdom have a base of sharing economy. It means that most of the starts up businesses have grown because of their shared economy with the other businesses. The success has become possible for the start up businesses only because of the shared assets. Hence, it would be appropriate to measure the success of the start-up businesses in terms of the sharing economy.

The most important benefit of the sharing economy in the United Kingdom is that the sharing economy has promised to provide new, different opportunities and even greater flexibility for the workers. It also provides the flexibility in the workplaces for all the businesses and creates new services. Another important thing about the sharing economy in the United Kingdom is that it allows all the people to rent anything. It has resulted in a great increase in the value of the peer to peer market of the United Kingdom. Thus, the online sharing platforms have benefited a lot to the people in the United Kingdom out of which the young people are taking most of the advantages of sharing economy.

There are many of the economic and non-economic advantages of the sharing economy in the UK. The idea of sharing economy allows the people of the United Kingdom to make money over the internet from their underused assets. It means that people can earn money by giving their assets on rent to the genuine customers. In the same way, the people who have just started up their businesses can also take the advantages of these assets for their businesses so that they will not have to spend much money on the new assets. Spending much money for the start-up businesses may not be suitable for most of the businesses. Finally, it would not be wrong to say that the sharing economy has played a role in the first step of success for most of the start-up businesses in the United Kingdom.

United Kingdom Economy

Background

The United Kingdom has a fiercely independent, international trading and developed economy and has sixth largest economy in the world by nominal GDP, eighth-largest by purchasing power parity and third largest in Europe after Germany and France. London is the world’s second largest financial center after New York. In the 18th century it was the world’s largest and first industrialized country, and was also able to be at forefront of technological advances which gave strong economic advantage to other countries in the world. UK possessed a dominant, influential, and powerful role in global economy during the 19th and early 20th centuries. The aerospace industry and the pharmaceutical industry are the most important industries of the economy of Great Britain.  Economy of United Kingdom is boosted by its oil and gas reserves. In 1979 most of the companies owned by state were privatized and opened to public competition and were listed in the UKs financial market. Continue reading United Kingdom Economy