3. A long-standing theory in comparative politics is that countries with higher levels of income are more likely to be democratic. While there have been many studies of this, show how a two sample t-test of whether democratic countries are, in fact, wealthier. The data below shows the mean levels of wealth for 47 autocratic countries and 94 democracies. Use this information to test whether there is a statistically significant difference in wealth.

Democratic Country Mean per-capita GDP Standard deviation Number of observations

yes 10,927 1,059 94

no 4,234 650 47

A. What is the null hypothesis? B. What is the alternative hypothesis? C. What is the t value? (Be sure to show your work) D. Using your table, can you reject the null hypothesis at the 0.05 level?