(TIỂU LUẬN) australia is among the top developed countries that contributes significantly to the world economy with the population representing

1 ASSIGNMENT COVER PAGE Course Code: ECON1193A Course Name: Business Statistic Location & Campus: RMIT SGS Vietnam Title of Assignment: Case Study analysis File (s) Submitted: ECON1193A – Dang Thi Thao An – S3915087 - Assignment Team Name/Group #: Student Name Dang Thi Thao An Student ID Number S3915087 Assignment Due Date: 18 July 2021 Date of Submission: 18 July 2021 Number of Pages including this 13 one: Word Count 1498 Student Contribution to Assessment 100% Main content, excluding appendices and references) Table of Contents Part Part Part A Part B Part C Part D Part E Part Part 10 Part 10 References 12 Part Australia is among the top developed countries that contributes significantly to the world economy With the population representing 0.3% of the world’s population, Australia’s GDP accounts for 1.7% of the world’s GDP (Resilient economy, 2021) Compared to its peers, Australia follows a different economic strategy The country prospered through the utilisation of diverse natural resources and effective immigration policy rather than radical technology innovations (Mcdonald, 2020) Nevertheless, Australia has been achieving remarkable economic achievement throughout its contemporary history Australia recorded a positive GDP growth rate for approximately three decades immediately after its 1991 recession In 2020, the inevitable negative impact of the Covid-19 pandemic ended Australia’s admirable streak of 28 consecutive years of economic growth (Mcdonald, 2020) However, the country managed to become the world’s 12th largest economy in 2021, climbing up two ranks compared to 2019 (Austrade.gov.au 2021) Figure Figure Figure The Australia currency statistic from 1980 to 2020 from figure illustrates that the overall trend of Australia currency is downward which emphasizes the depreciation of the Australian dollar The depreciation firmly affects the import and export, and the whole economy in general Australia’s produced goods and services become cheaper which might result in the rise of international competitiveness of Australia exported goods and services (Reserve bank of Australia) Furthermore, the depreciation also draws the Australian resident to prefer Australia produced goods and service instead of foreign produced goods and service (Kramer, 2021) Consequently, since the demand of Australia produced goods and services increases, the firms tend to hire more employees which prompt the rise of Australia's employment as presented in figure Additionally, the depreciation also leads to inflation Excessively low or high inflation is harmful to an economy A healthy economy should have an annual inflation rate around 2% (Fernando, 2021) The figure represents that from 1995 to 2020 the average inflation rate of Australia is around 2% which is low and stable Part Part A The line chart of Australia’s imports and exports from 1986 to 2018 represents that the overall import is higher compared to the export Even though there were a few months where exports and imports went down, the general direction was upward In comparison, Australia exports fluctuate more than imports as it experienced exponential growth in 2001, then plunged significantly in 2004, and followed by reaching its peak in 2009 In the meantime, the distribution of imports is quite stable which illustrates its steady growth Part B If there are no outliers, mean can be perceived as the best measure of central tendency to describe the centre of the data set as it considers every value in the set of numbers Indeed, mean is the best measure that represents the average imports and exports of goods and services in Australia as percentage of GDP since both of the data sets not contain any outliers Australia exports have an average of 18.95% of GDP and imports have an average of 20.02% of GDP Hence, imports are 1.07% greater than exports In other words, over this period of time, Australia has a trade deficit as their average value of imported goods and services exceeds the value of exported goods and services which create a negative trade balance Part C Since imports and exports data sets have similar mean and not containing outliers, standard deviation is the best measure of variation to compare the spread out of two data sets based on the average amount of dispersion from the mean The below table has shown that the standard deviation of Export is greater than Import (2.20 > 1.97) which indicates that the Exports data set spread more than Imports data set Specifically, the standard deviation demonstrates that the Australia export has slightly higher fluctuation compared to the import Part D The distribution of both export and import data sets are skewed left which illustrate that during this period of time the percentage of export and import in Australia increased overall The range of export distribution is wider than imports (8>7) which suggests that the Australia exports vary more than their imports Besides, the median of import data is a little higher than the export which means the Australia imports from 1986 to 2018 is relatively higher than the exports on average Part E Based on the Box and Whisker plot above, it is clear that the import data set is skewed left as /Q1,Q2/ > /Q2,Q3/ ; /Xmin,Q1/ > /Q3,Xmax/ The export data set has /Q1,Q2/ > /Q2,Q3/ ; /Xmin,Q1/ < /Q3,Xmas/ ; /Xmin,Q2/ >/Q2,Xmas/ , therefore the export data set is also skewed left The export has a higher range compared to the import which indicates that the dispersion of the whole data set is larger than the imports (7.99>6.6) In short, Australia exports are more fluctuating On the contrary, the IQR of export is lower than import which shows that the middle half of the export data set has wider distribution (2.63