Scholars of political development have investigated the so-called oil curse, the

Question

Scholars of political development have investigated the so-called oil curse, the idea that oil-rich countries tend not to develop democratic systems of governance, that “oil and democracy do not mix.”17 Framing this idea in the form of a hypothesis: In a comparison of countries, those having economies less dependent on oil wealth will be more democratic than will countries having economies more dependent on oil wealth. Consider the following data, which present information for twenty countries with non-oil-dependent economies and fifteen countries with oil-dependent economies. The dependent variable is a 7-point level-of-democracy scale, with higher scores denoting more democracy. Here are the mean values and standard errors of the democracy scale for nonoil-dependent and oil-dependent countries:

A.   State the null hypothesis for the non-oil-dependent/oil-dependent comparison.

B.   Calculate the difference between the means of the democracy scale for non-oil-dependent and oil-dependent countries. Calculate the standard error of the difference. Calculate the t-statistic.

C.   Does the mean difference pass the 1.645 test of significance? Explain how you know.

D.   Based on these results, suppose a researcher decides to reject the null hypothesis. Is this decision supported by the statistical evidence? Explain.

Explanation / Answer

A) null hypothesis: mean difference =0

alternate hypothesis: mean differnce >0

B) std error =(0.512+0.282)1/2=0.5818

test stat z=(mean difference)/std error =(4.7-2.6)/0.5818=3.609

c) as test stat is greater then 1.645, we reject the null hypothesis, and accept that mean democracy rate in oil depedent country is highret.,

d)Yes as we are supposed to reject the hypothesis.,

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.