10 Correlation Analysis: It is widely believed that life expectancy is longer in higher income countries than in lower income countries. Suppose that you were able to randomly sample countries where per capita income and life expectancy are known. Is life expectancy positively correlated with per capita income indeed? Test this hypothesis using life expectancy data.
1. What is the null hypothesis and alternate hypothesis?
2. Measure the degree of association between PER_CAPITA and LIFE_EXPEC. That is, what is the Pearson correlation coefficient and Spearman rho, respectively?
3. Draw a conclusion about the relationship between life expectancy and per capita income.
COUNTRY Group PER_CAPITA LIFE_EXPEC
Angola 4 340 47
Burkina Faso 4 240 47
Burundi 4 180 46
Chad 4 240 48
Gabon 2 4230 54
Lesotho 4 670 56
Madagascar 4 22 52
Malawi 4 220 36
Morocco 3 1250 72
Mozambique 4 90 44
Namibia 3 2220 42
Uganda 4 320 40
Azerbaijan 4 510 70
Bangladesh 4 270 59
Cambodia 4 52 52
Japan 2 3964 80
Lebanon 2 3350 70
Malaysia 3 1655 72
Nepal 4 33 55
Philippines 4 307 66
Saudi Arabia 2 6790 70
Turkey 2 3130 68
Turkmenistan 3 3047 66
Belarus 3 2150 68
Finland 2 5613 77
France 1 26050 78
Germany 1 28260 77
Lithuania 3 2291 71
Portugal 1 10450 75
Romania 3 1420 69
Ecuador 3 1590 69
El Salvador 3 1810 69
Mexico 2 3680 72
Puerto Rico 2 7010 74
Canada 1 19290 78