STATISTICAL ANALYSIS OF FACTORS AFFECTING THE STANDARD OF LIVING IN NIGERIA

Abstract

Despite the effort of the government to reduce or eradicate unemployment, they still lack strategies on how to generate employment.  Hence, there is a need to conduct research on these factors that affect the standard of living and to find out between those factors which one have more impact on Nigeria’s standard of living. The method of data analysis adopted in this study is multiple linear regression with poverty as the dependent variable Y, inflation and unemployment are the two independent variables. The analysis of variance (ANOVA) techniques was employed to examine the significant difference between the response and the explanatory variables. The data used for this research were gotten from the World Bank database which covers the period of 45 years (1976-2020). The coefficients of the regression are significant with a P-value of 0.0001. We observe that the value of the correlation coefficient is 0.837. This indicates that there is a strong positive association between poverty and the unemployment rate, with a significant p-value of 0.001<0.05. Based on these results, we concluded that for Nigerians to live above poverty and for the economy to grow, the government must take concrete steps in opening up the economy.