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The results are presented in the following table: Dependence of the economy on oil revenues Prevalence of conflict over the past Low five years Medium
The results are presented in the following table: Dependence of the economy on oil revenues Prevalence of conflict over the past Low five years Medium High Total Low 5 2 3 10 Medium 9 5 8 22 High 11 1 18 Total 20 18 12 50 Chi-squared statistic = 9.50, p =0.04979 Measure of association Value Cramer's V 0.19 Lambda 0.22 Gamma 0.10 a) Is there a correlation between the two variables? What do these results allow you to say about the hypothesis of the authors? b) Can you say anything about the strength of the relationship? Be specific. c) Suppose that the results from the Chi-Squared test gave us the following instead: Chi-Squared statistic = 9.43, p = 0.0512 Would these results lead you to change your answers in a) above?Resource producing countries are often Thought to face a specic set of political constraints that inuence the social? economic? and political conditions that prevail in their society. One version of this \"resource curse\" investigates links between the importance of oil in the economyr and the likelihood of armed conict. In one of these studies, researchers attempt to focus on the possibilityr of a direct link between the two variables: the hypothesis would be that the degree of dependence on oil revenues of an economy is correlated with the prevalence of conict. In order to test this hypothesis? the researchers use the following two variables on a sample of 5!] countries: I Oil dependence, expressed as one of three possibilities: c low [oil production accounts for less than 5% of GDP] c medium [oil production accounts for more than 5% of GDP but less than 20%} c- high [oil production accounts for 20% or more of GDP] I prevalence of armed conflict over the past five years: c low [25 or less battlerelated deaths per 1veer} c medium [over 25 but less than 1000 battle-related deaths per year] c high [1000 battlerelated deaths or over per 1pear]
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