Total mark:

Donika Raifi

Module: quantative Module leader: Ildiko Reisch

method
Comments:
Introduction
To better understand the data being presented, it is crucial to understand the meaning of both

Growth domestic product (GDP) and Health Expenditure. The analysed data will firstly be for

the year of 2015, and later on we will move on to an analysis of comparing two countries to the

world data. Furthermore there will be a comparison between Russia and Spain in 2015, followed

by the two countries being compared to the world data.

Term Meaning Breakdown

Health Expenditure

Health spending presents us with the final consumption of health care goods and services, this

includes the personal health care which includes long-term care and other health care types such

as rehabilitative and curative care, but it does exclude the spending that goes to investments.

Health care is financed through a mix of financing arrangements including government spending

and compulsory health insurance as well as voluntary health insurance and private funds such as

households’ out-of-pocket payments, NGOs and private corporations. This factor is presented as

a total and divided by the type of financing. As previously mentioned, there are three financing

options, firstly there is government financing, secondly there is voluntary financing, and lastly

the out of pocket financing, once the total is calculated it is measured as a share of GDP, and

more specifically the share of total health spending is measured in USD per capita.

In this descriptive statistics analysis the level of current health expenditure is presented as a

percentage of gross domestic product. The yearly consumption of healthcare goods and services

is included in the estimation of current health expenditures, while factors such as the emergency

outbreaks, following vaccines and resources directed towards emergency situations, and

machinery are not included in this estimation.

Gross Domestic Product

Gross Domestic Product (GDP) is how the countries overall economic activity is measured. GDP

is the monetary value of all the finished goods and services produced within a country's borders

usually recorded yearly. GDP is used to estimate the growth and size of a country’s economy.

When wanting a more in depth understanding of the growth domestic product of a country for a

specific year, they adjusted it to the population and the inflation. GDP is a strong help when it

comes to strategic decision making for businesses, policy makers, as well as investors.

It includes all private and public consumption, government outlays, investments, additions to

private inventories, paid-in construction costs. With that being said Exports of a country are

added onto it while imports are deducted. Though GDP is usually calculated on an annual basis,

it can be calculated on a quarterly basis as well.

Descriptive Statistics

Descriptive statistics is the term given to the analysis of data that helps describe, show or

summarize data in an expressive structure, allowing us to see potential trends and patterns in the

data. However it is important to note that descriptive statistics are simply a way to describe data,

they do not provide us with the necessary data and understanding to conclude on any hypothesis

one might have regarding the displayed data.

Descriptive statistics is a very important tool as it provides easy understanding of complex

figures. To most individuals it would be exceptionally difficult to analyse and successfully

understand large quantities of complex graphs and raw data presented. Therefore Descriptive
statistics allows simpler interpretation of challenging data. Typically, there are two general types

of statistic that are used to describe data:

o Measures of central tendency: these are ways of describing the central position of a

frequency distribution for a group of data. We can describe this central position using a

number of statistics, including the mode, median, and mean.

o Measures of spread: these are ways of summarizing a group of data by describing how

spread out the scores are. Measures of spread help us to summarize how spread out these

scores are. To describe this spread, a number of statistics are available to us, including the

range, quartiles, absolute deviation, variance and standard deviation.

When we use descriptive statistics it is useful to summarize our group of data using a

combination of tabulated description which includes tables, graphical description which includes

charts as well as graphs, and statistical commentary which is typically the discussion and

breakdown of the found results.

OECD
Data The Organization for Economic Cooperation and Development (OECD) is a unique
forum where the governments of 34 democracies with market economies work with
each other, as well as with more than 70 non-member economies to promote economic
growth, prosperity, and sustainable development.

Analysis Of Excel Data

Based on data obtained from OECD countries, when the ratio of health spending to GDP is less
than the optimal level of 7.55%, increases in health spending effectively lead to better economic
performance. Which is why it is important to understand the following data. Otherwise, such
spending does not cause improvements in care.
Before analysing our data on the current health expenditures, it is important to understand what
the quartiles in our data are. The quartiles word the following way, in statistics they are values
that divide your data into quarters. As a result of this, your data is divided into four segments
based on where the numbers fall on the number line. The real number system can be visualized
as a horizontal line that extends from a point known as the Origin in both directions towards
infinity. There is also a unit of length. The origin relates to the number 0. A positive
number x corresponds to a point x unit away from the origin to the right, and a negative number -
x corresponds to a point on the line x units away from the origin to the left. In order to find your
quartiles you must firstly put your number data in order.
The four quarters that divide a data set into quartiles are:

1. The lowest 25% of numbers.

2. The next lowest 25% of numbers (up to the median).
3. The second highest 25% of numbers (above the median).
4. The highest 25% of numbers.

In the following descriptive

statistics charts provides us data
based on the worlds 2015 health
expenditures. It is evident that the
mean is roughly 6.7 percent,
which according to the OECD
data is less than the optimal level
which is 7.55 and therefore
increased spending in health
would actually lead to better
economic performance.
Furthermore we also see that the
standard deviation which is a
number used to explain how
measurements for a group are
spread out from the average,
or expected value. Essentially
a low standard deviation will
mean that most of the
numbers displayed in your data are close to the average, while a high standard
deviation means that the data is very much spread out. In this case we see that
standard deviation is roughly 2.981695519 which is fairly low, meaning that most data in
this category is close to the mean (average) which is as previously stated 6.72604251.
This is also evident through the median which is 6.234326755, which happens to be
close to the mean, once again showing that the numbers are fairly close in range to
each other.
 In the five number summary, also
known as the quartiles we see that
quartile 0 which displays the
lowest value found in the data is
2.02911782 and quartile one
which shows, 4.727357888 the
lowest twenty five percent of
numbers. The lowest 25% of
numbers up until the median in the data is 6.2343267225 in under quartile two. Quartile three
shows the second highest twenty five perfect of data that is above the median, which in this
particular case is 8.201767225. And lastly the fourth quartile displays the largest value in our
data, which is 22.62079944. This number as you can see is very much spread out from most of
the other data as it is a larger value, further away from the average.

In this histogram made

to present the data we
have gathered using all
the previously analyzed
data, we can see that
most countries Growth
domestic product
percentages of health
expenditure in 2015,
does lie in the four to
seven percent category.
There is also a
significant amount of data that varies in 0 to three percent, as well as eight to eleven percent.
There is a very minimal amount of data twelve percent and up. This histogram shows us the
earlier explained concept, that in this particular set of data most presented numbers are very close
to the average, hence there is not too much drastic variation.
 Part of the task was to analyze and compare the data of
Spain and Russia to the data of the world. We can see
that the mean is roughly eight percent which is higher
than when we looked at then world data. However as
the optimal value is about 7.7 percent, this still means
that its good for economic performance. The standart
deviation is once again lower, providing us with the
information that these two the countries in comparison
to the world, do not have outstandingly high or low
data, and are still near the average of the other
countries in the world. In this set of data the median is
nine percent, that being higher than previously it is
still close to the currently displayed mean.

In our five number summary for this set of comparison data,

we see that the lowest value is 5.27700319 displayed under
quartile 0. The lowest twenty five percent is roughly 6.4
percent shown under quartile one. The second quartile shows
the lowest twenty five percent up until the median being
about 9.8, and under quartile three which displays the twenty
five percent above the median we see the same set of data.
Under quartile four we have the highest data in this pool of data, and due to the small amount of
countries we are comparing, it also happens to be the same value as Q2 and Q3.

In this pivot chart we can the data of Russia in comparison to

the data of the world, 6they have a different of about four
percent, and in total equal to 15.16074276.
In this graph of Russia in Comparison to the world, we see a slight difference in percentage once
again of about four percent, however this means that once again most of the data in this field is
evidently, very close to each other. There is variance in the data for each country due to the
economic standings of a country, some have more to spend on health care while some have less
however, overall all countries are not very far apart from each other.

Conclusion
In conclusion, from the given and analysed data, we can see that when it comes to health
expenditures in the world. Most countries are actually near the 7.7 percent value and are
ultimately doing well for their economy. In the few cases where the countries data is either very
high or the complete opposite being very low

References
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Wang, F. (2015). More Health Expenditure, Better Economic Performance? Empirical Evidence From
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