Question

Stats:

Answer 1

It stands to reason that the economy performs differently in politically stable countries than in those that are unstable. We have a sample of 7 unstable countries and 3 stable ones. As an indicator of the state of the economy, we use per capita GDP. The mean per capita GDP in the stable countries is $12296 (with a standard deviation of 9499). The mean per capita GDP in the unstable countries is $1461 (with a standard deviation of 1200). Perform a Welch test of the null hypothesis that the population means of per capita GDP are the same in stable and unstable countries. What is the standard error of the difference in the sample means when rounded to the nearest whole number?