getwd()
## [1] "C:/Users/Mohit gupta/Documents/r assignment"
setwd("C:/Users/Mohit gupta/Documents/r assignment")

Reading the datasets in R.

ob1<- read.csv(paste("Dataset 1.csv" , sep=''))
ob2<- read.csv(paste("Dataset2.csv" , sep=''))

visualizing the length and breadth of your datasets.

dim(ob1)
## [1] 63 19
dim(ob2)
## [1] 16  4

A descriptive statistics (min, max, median etc) of each variable.

library(psych)
describe(ob1)
##               vars  n    mean      sd  median trimmed     mad  min
## Sector*          1 63   32.00   18.33   32.00   32.00   23.72 1.00
## X2000.01         2 63   37.76  112.23    4.03   14.60    5.97 0.00
## X2001.02         3 63   63.93  157.88    5.07   25.51    7.52 0.00
## X2002.03         4 63   42.93   86.61   11.01   18.97   16.32 0.00
## X2003.04         5 63   34.73   67.65    6.37   18.98    9.44 0.00
## X2004.05         6 63   51.09  101.93    9.09   26.20   13.39 0.00
## X2005.06         7 63   87.93  206.44   22.62   38.13   32.80 0.00
## X2006.07         8 63  198.28  686.78   25.82   53.52   38.28 0.00
## X2007.08         9 63  390.09 1026.25   58.82  166.18   85.32 0.00
## X2008.09        10 63  498.35 1134.65   84.88  209.15  124.29 0.00
## X2009.10        11 63  410.07  926.81   69.74  194.59  103.25 0.00
## X2010.11        12 63  339.41  627.14   58.07  188.81   85.84 0.00
## X2011.12        13 63  557.47 1031.47  129.36  303.19  186.36 0.00
## X2012.13        14 63  355.93  778.09   95.41  173.96  135.04 0.00
## X2013.14        15 63  385.70  658.43  113.78  247.91  167.89 0.00
## X2014.15        16 63  490.96  837.79  177.22  281.21  231.29 0.00
## X2015.16        17 63  634.94 1335.31  159.13  291.26  226.50 0.00
## sector.total    18 63 4579.57 8046.52 1451.28 2844.47 1989.15 4.06
## sector.growth   19 63 4541.81 8012.39 1451.28 2812.21 2019.14 4.06
##                    max    range skew kurtosis      se
## Sector*          63.00    62.00 0.00    -1.26    2.31
## X2000.01        832.07   832.07 5.77    37.07   14.14
## X2001.02        873.23   873.23 3.70    14.36   19.89
## X2002.03        419.96   419.96 2.76     7.00   10.91
## X2003.04        368.32   368.32 3.05    10.15    8.52
## X2004.05        527.90   527.90 2.99     9.44   12.84
## X2005.06       1359.97  1359.97 4.27    21.21   26.01
## X2006.07       4713.78  4713.78 5.27    29.24   86.53
## X2007.08       6986.17  6986.17 4.87    26.29  129.30
## X2008.09       6183.49  6183.49 3.43    11.97  142.95
## X2009.10       5466.13  5466.13 3.84    15.88  116.77
## X2010.11       3296.09  3296.09 2.65     7.58   79.01
## X2011.12       5215.98  5215.98 2.67     7.23  129.95
## X2012.13       4832.98  4832.98 3.97    17.71   98.03
## X2013.14       3982.89  3982.89 3.14    12.57   82.95
## X2014.15       4443.26  4443.26 2.76     7.97  105.55
## X2015.16       6889.46  6889.46 3.22    10.24  168.23
## sector.total  50792.42 50788.36 3.48    15.39 1013.77
## sector.growth 50721.04 50716.98 3.51    15.63 1009.47
describe(ob2)
##               vars  n     mean       sd   median  trimmed      mad     min
## years            1 16  2008.50     4.76  2008.50  2008.50     5.93 2001.00
## fdi              2 16 18032.05 13232.34 21903.33 17594.56 16834.98 2187.85
## inflation        3 16     6.80     3.33     6.09     6.54     3.47    2.23
## exchange.rate    4 16   104.90     4.73   103.88   104.70     2.97   97.68
##                    max    range skew kurtosis      se
## years          2016.00    15.00 0.00    -1.43    1.19
## fdi           40000.99 37813.14 0.05    -1.62 3308.09
## inflation        14.97    12.74 0.81    -0.07    0.83
## exchange.rate   114.91    17.23 0.69    -0.47    1.18

one-way contingency tables for the categorical variables

table1<- with(ob1, table(sector.total))
table1
## sector.total
##     4.06     5.12     7.98    27.74    37.79    67.28    75.32     77.7 
##        1        1        1        1        1        1        1        1 
##   109.62   141.24   147.45    164.9   178.27   188.51   337.16   346.03 
##        1        1        1        1        1        1        1        1 
##   434.01   499.76   537.63    564.8   581.49   589.05   710.98   744.72 
##        1        1        1        1        1        1        1        1 
##   772.03   837.94   931.04  1093.83  1097.13  1111.31  1256.08  1451.28 
##        1        1        1        1        1        1        1        1 
##  1636.01  1637.28  1844.32  1852.46  1977.51  2084.26  2216.08  2376.95 
##        1        1        1        1        1        1        1        1 
##  3068.09  3109.13  3356.59  3592.11  4064.58  4336.72  4397.92  4977.03 
##        1        1        1        1        1        1        1        1 
##  6675.76   6815.7  7956.74  8890.36  9227.33  9747.05 10476.15 11872.48 
##        1        1        1        1        1        1        1        1 
## 11900.29 13849.51  15064.6 18382.32 21017.78 24187.95 50792.42 
##        1        1        1        1        1        1        1
table2<- with(ob2, table(fdi))
table2
## fdi
##  2187.85  2378.71  2704.32  3218.69  4027.69  5539.75 12491.76 21383.07 
##        1        1        1        1        1        1        1        1 
## 22423.59 24299.32  24575.4 25834.38 30930.47 31395.96 35120.78 40000.99 
##        1        1        1        1        1        1        1        1
table3<- with(ob2, table(inflation))
table3
## inflation
##  2.23   3.2  3.72  3.78  5.16  5.51  5.57  5.86  6.32  6.49  6.53  9.13 
##     1     1     1     1     1     1     1     1     1     1     1     1 
##  9.47   9.7 11.17 14.97 
##     1     1     1     1
table4<- with(ob2, table(exchange.rate))
table4
## exchange.rate
##  97.68  99.17 101.78 101.97 102.32 102.71 102.82 103.46  104.3 105.13 
##      1      1      1      1      1      1      1      1      1      1 
## 105.17  106.1  106.3 111.86 112.76 114.91 
##      1      1      1      1      1      1

two-way contingency tables for the categorical variables

table5<- xtabs(~fdi+ inflation, data= ob2)
table5
##           inflation
## fdi        2.23 3.2 3.72 3.78 5.16 5.51 5.57 5.86 6.32 6.49 6.53 9.13 9.47
##   2187.85     0   0    0    1    0    0    0    0    0    0    0    0    0
##   2378.71     0   0    0    0    1    0    0    0    0    0    0    0    0
##   2704.32     0   0    1    0    0    0    0    0    0    0    0    0    0
##   3218.69     0   0    0    0    0    0    1    0    0    0    0    0    0
##   4027.69     0   1    0    0    0    0    0    0    0    0    0    0    0
##   5539.75     0   0    0    0    0    0    0    0    0    0    1    0    0
##   12491.76    0   0    0    0    0    1    0    0    0    0    0    0    0
##   21383.07    0   0    0    0    0    0    0    0    0    1    0    0    0
##   22423.59    0   0    0    0    0    0    0    0    0    0    0    1    0
##   24299.32    0   0    0    0    0    0    0    1    0    0    0    0    0
##   24575.4     0   0    0    0    0    0    0    0    0    0    0    0    0
##   25834.38    0   0    0    0    0    0    0    0    0    0    0    0    1
##   30930.47    0   0    0    0    0    0    0    0    1    0    0    0    0
##   31395.96    0   0    0    0    0    0    0    0    0    0    0    0    0
##   35120.78    0   0    0    0    0    0    0    0    0    0    0    0    0
##   40000.99    1   0    0    0    0    0    0    0    0    0    0    0    0
##           inflation
## fdi        9.7 11.17 14.97
##   2187.85    0     0     0
##   2378.71    0     0     0
##   2704.32    0     0     0
##   3218.69    0     0     0
##   4027.69    0     0     0
##   5539.75    0     0     0
##   12491.76   0     0     0
##   21383.07   0     0     0
##   22423.59   0     0     0
##   24299.32   0     0     0
##   24575.4    1     0     0
##   25834.38   0     0     0
##   30930.47   0     0     0
##   31395.96   0     0     1
##   35120.78   0     1     0
##   40000.99   0     0     0
table6<- xtabs(~fdi+ exchange.rate , data= ob2)
table6
##           exchange.rate
## fdi        97.68 99.17 101.78 101.97 102.32 102.71 102.82 103.46 104.3
##   2187.85      0     1      0      0      0      0      0      0     0
##   2378.71      0     0      0      0      0      0      1      0     0
##   2704.32      1     0      0      0      0      0      0      0     0
##   3218.69      0     0      1      0      0      0      0      0     0
##   4027.69      0     0      0      0      0      1      0      0     0
##   5539.75      0     0      0      0      0      0      0      0     0
##   12491.76     0     0      0      0      0      0      0      0     1
##   21383.07     0     0      0      0      0      0      0      0     0
##   22423.59     0     0      0      0      0      0      0      0     0
##   24299.32     0     0      0      0      0      0      0      1     0
##   24575.4      0     0      0      0      0      0      0      0     0
##   25834.38     0     0      0      1      0      0      0      0     0
##   30930.47     0     0      0      0      0      0      0      0     0
##   31395.96     0     0      0      0      1      0      0      0     0
##   35120.78     0     0      0      0      0      0      0      0     0
##   40000.99     0     0      0      0      0      0      0      0     0
##           exchange.rate
## fdi        105.13 105.17 106.1 106.3 111.86 112.76 114.91
##   2187.85       0      0     0     0      0      0      0
##   2378.71       0      0     0     0      0      0      0
##   2704.32       0      0     0     0      0      0      0
##   3218.69       0      0     0     0      0      0      0
##   4027.69       0      0     0     0      0      0      0
##   5539.75       0      1     0     0      0      0      0
##   12491.76      0      0     0     0      0      0      0
##   21383.07      0      0     0     0      0      0      1
##   22423.59      1      0     0     0      0      0      0
##   24299.32      0      0     0     0      0      0      0
##   24575.4       0      0     0     0      0      1      0
##   25834.38      0      0     0     0      0      0      0
##   30930.47      0      0     0     1      0      0      0
##   31395.96      0      0     0     0      0      0      0
##   35120.78      0      0     0     0      1      0      0
##   40000.99      0      0     1     0      0      0      0
table7<- xtabs(~inflation+ exchange.rate , data= ob2)
table7
##          exchange.rate
## inflation 97.68 99.17 101.78 101.97 102.32 102.71 102.82 103.46 104.3
##     2.23      0     0      0      0      0      0      0      0     0
##     3.2       0     0      0      0      0      1      0      0     0
##     3.72      1     0      0      0      0      0      0      0     0
##     3.78      0     1      0      0      0      0      0      0     0
##     5.16      0     0      0      0      0      0      1      0     0
##     5.51      0     0      0      0      0      0      0      0     1
##     5.57      0     0      1      0      0      0      0      0     0
##     5.86      0     0      0      0      0      0      0      1     0
##     6.32      0     0      0      0      0      0      0      0     0
##     6.49      0     0      0      0      0      0      0      0     0
##     6.53      0     0      0      0      0      0      0      0     0
##     9.13      0     0      0      0      0      0      0      0     0
##     9.47      0     0      0      1      0      0      0      0     0
##     9.7       0     0      0      0      0      0      0      0     0
##     11.17     0     0      0      0      0      0      0      0     0
##     14.97     0     0      0      0      1      0      0      0     0
##          exchange.rate
## inflation 105.13 105.17 106.1 106.3 111.86 112.76 114.91
##     2.23       0      0     1     0      0      0      0
##     3.2        0      0     0     0      0      0      0
##     3.72       0      0     0     0      0      0      0
##     3.78       0      0     0     0      0      0      0
##     5.16       0      0     0     0      0      0      0
##     5.51       0      0     0     0      0      0      0
##     5.57       0      0     0     0      0      0      0
##     5.86       0      0     0     0      0      0      0
##     6.32       0      0     0     1      0      0      0
##     6.49       0      0     0     0      0      0      1
##     6.53       0      1     0     0      0      0      0
##     9.13       1      0     0     0      0      0      0
##     9.47       0      0     0     0      0      0      0
##     9.7        0      0     0     0      0      1      0
##     11.17      0      0     0     0      1      0      0
##     14.97      0      0     0     0      0      0      0

Boxplots of the variables

boxplot(ob1$sector.total, xlab="Sector Total", main="Boxplot of Sector total of FDI for 16 years", horizontal = TRUE)

boxplot(ob2$fdi, xlab="FDI", main="Boxplot of FDI ", horizontal = TRUE, col = "blue")

boxplot(ob2$exchange.rate, xlab="Exchange Rate", main="Boxplot of Exchange Rate ", horizontal = TRUE, col = "red")

boxplot(ob2$inflation, xlab="Inflation Rate", ylab="Percentage", main="Boxplot Inflation Rate ", horizontal = TRUE, col = "yellow")

Histograms

hist(ob1$sector.total, col="purple", xlab="Sector Total",main="Boxplot of Sector total of FDI for 16 years")

hist(ob2$fdi , col="blue", xlab="FDI",main="Boxplot of FDI")

hist(ob2$exchange.rate , col="red", xlab="Exchange Rate",main="Boxplot of Exchange Rate")

hist(ob2$inflation , col="yellow", xlab="Inflation Rate",main="Boxplot of Inflation Rate")

a correlation matrix

options(digits = 2)
cor(ob2)
##               years  fdi inflation exchange.rate
## years          1.00 0.89      0.26          0.47
## fdi            0.89 1.00      0.48          0.53
## inflation      0.26 0.48      1.00          0.31
## exchange.rate  0.47 0.53      0.31          1.00

correlation matrix using corrgram.

library(corrgram)
corrgram(ob2, lower.panel = panel.shade, upper.panel = panel.pie ,text.panel = panel.txt, main="Corrgram of FDI, Inflation and Exchange rate")  

A scatter plot matrix

library(car)
## 
## Attaching package: 'car'
## The following object is masked from 'package:psych':
## 
##     logit
scatterplotMatrix(~ fdi+exchange.rate+ inflation, data= ob2,
main="FDI vs Inflation Vs Exchange Rtae")

A suitable test to check your hypothesis for your suitable assumptions.

1]FDI and inflation

chisq.test(table5)
## Warning in chisq.test(table5): Chi-squared approximation may be incorrect
## 
##  Pearson's Chi-squared test
## 
## data:  table5
## X-squared = 200, df = 200, p-value = 0.2

2]FDI and Exchange rate

chisq.test(table6)
## Warning in chisq.test(table6): Chi-squared approximation may be incorrect
## 
##  Pearson's Chi-squared test
## 
## data:  table6
## X-squared = 200, df = 200, p-value = 0.2

t-test

1]FDI and inflation

t.test(ob2$fdi, ob2$inflation, paired=TRUE)
## 
##  Paired t-test
## 
## data:  ob2$fdi and ob2$inflation
## t = 5, df = 20, p-value = 7e-05
## alternative hypothesis: true difference in means is not equal to 0
## 95 percent confidence interval:
##  10975 25075
## sample estimates:
## mean of the differences 
##                   18025

2]FDI and Exchange rate

t.test(ob2$fdi, ob2$exchange.rate , paired=TRUE)
## 
##  Paired t-test
## 
## data:  ob2$fdi and ob2$exchange.rate
## t = 5, df = 20, p-value = 7e-05
## alternative hypothesis: true difference in means is not equal to 0
## 95 percent confidence interval:
##  10877 24977
## sample estimates:
## mean of the differences 
##                   17927