Life Expectancy At Birth and Health Expenditure Per Capita in 2016 Collected From Countries

in Europe

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 Data from a Database: Health Nutrition and Population Statistics

Last Updated: 09/18/2020

https://databank.worldbank.org/source/health-nutrition-and-population-statistics#

Table 1: Raw Data

Life expectancy at Current health expenditure

Country Name Country Code birth, total (years) per capita (current US$)
Albania ALB 78.19 ..
Andorra AND .. 3843.70
Armenia ARM 74.64 358.84
Austria AUT 81.64 4718.94
Azerbaijan AZE 72.49 259.44
Belarus BLR 73.83 297.54
Belgium BEL 81.44 4278.77
Bosnia and Herzegovina BIH 77.00 443.78
Bulgaria BGR 74.81 612.48
Channel Islands CHI 82.60 ..
Croatia HRV 78.02 840.91
Cyprus CYP 80.51 1636.82
Czech Republic CZE 79.03 1321.62
Denmark DNK 80.85 5565.59
Estonia EST 77.64 1185.30
Faroe Islands FRO 82.05 ..
Finland FIN 81.43 4094.89
France FRA 82.57 4256.96
Georgia GEO 73.21 308.46
Germany DEU 80.99 4734.18
Gibraltar GIB .. ..
Greece GRC 81.39 1499.35
Greenland GRL 70.85 ..
Hungary HUN 76.06 914.56
Iceland ISL 82.20 5063.61
Ireland IRL 81.65 4721.11
Isle of Man IMN .. ..
Italy ITA 83.24 2736.26
Kosovo XKX 71.65 ..
Latvia LVA 74.58 874.20
Liechtenstein LIE 82.26 ..
Lithuania LTU 74.67 988.53
Luxembourg LUX 82.69 5595.55
Moldova MDA 71.62 171.19
Monaco MCO .. 2938.53
Montenegro MNE 76.57 ..
Netherlands NLD 81.56 4753.38
North Macedonia MKD 75.50 327.42
Norway NOR 82.41 7496.77
Poland POL 77.85 813.47
Portugal PRT 81.12 1802.77
Romania ROU 75.21 476.24
Russian Federation RUS 71.65 469.13
San Marino SMR .. 3021.65
Serbia SRB 75.69 496.42
Slovak Republic SVK 77.17 1174.80
Slovenia SVN 81.18 1834.16
Spain ESP 83.33 2390.63
Sweden SWE 82.31 5707.06
Switzerland CHE 83.60 9835.96
Turkey TUR 76.86 468.65
Ukraine UKR 71.48 141.94
United Kingdom GBR 81.16 3945.01
Table 2: Data Array for Life Expectancy at Birth for Cities in Europe

Country Name Life expectancy at birth, total (years)

Armenia 74.64
Austria 81.64
Azerbaijan 72.49
Belarus 73.83
Belgium 81.44
Bosnia and Herzegovina 77.00
Bulgaria 74.81
Croatia 78.02
Cyprus 80.51
Czech Republic 79.03
Denmark 80.85
Estonia 77.64
Finland 81.43
France 82.57
Georgia 73.21
Germany 80.99
Greece 81.39
Hungary 76.06
Iceland 82.20
Ireland 81.65
Italy 83.24
Latvia 74.58
Lithuania 74.67
Luxembourg 82.69
Moldova 71.62
Netherlands 81.56
North Macedonia 75.50
Norway 82.41
Poland 77.85
Portugal 81.12
Romania 75.21
Russian Federation 71.65
Serbia 75.69
Slovak Republic 77.17
Slovenia 81.18
Spain 83.33
Sweden 82.31
Switzerland 83.60
Turkey 76.86
Ukraine 71.48
United Kingdom 81.16

Table 3: Data Array for Current Health Expenditure per Capita for Cities in Europe

Country Name Current health expenditure per capita (current US$)

Armenia 358.84
Austria 4718.94
Azerbaijan 259.44
Belarus 297.54
Belgium 4278.77
Bosnia and Herzegovina 443.78
Bulgaria 612.48
Croatia 840.91
Cyprus 1636.82
Czech Republic 1321.62
Denmark 5565.59
Estonia 1185.30
Finland 4094.89
France 4256.96
Georgia 308.46
Germany 4734.18
Greece 1499.35
Hungary 914.56
Iceland 5063.61
Ireland 4721.11
Italy 2736.26
Latvia 874.20
Lithuania 988.53
Luxembourg 5595.55
Moldova 171.19
Netherlands 4753.38
North Macedonia 327.42
Norway 7496.77
Poland 813.47
Portugal 1802.77
Romania 476.24
Russian Federation 469.13
Serbia 496.42
Slovak Republic 1174.80
Slovenia 1834.16
Spain 2390.63
Sweden 5707.06
Switzerland 9835.96
Turkey 468.65
Ukraine 141.94
United Kingdom 3945.01
Life expectancy at birth and health expenditure per capita in 2016 collected from countries

in Europe

The data is analyzed to determine a statistically significant relationship between the independent

variable, life expectance at birth, and the dependent variable; current health expenditure.

Descriptive Statistics for Life Expectancy

Life expectancy at birth, total (years)

Mean 78.21
Median 78.02
Mode #N/A

Measures of Central Tendency for Life Expectancy

The arithmetic mean for life expectancy at birth is 78.21 years. The value at the middle of the

dataset after arranging them in either ascending or descending order (median) is 72.02. The

variable does not have a valid mode. This is because there does not exist a value that appears

more than one time in the variable.

The mean of 78.21 and a median of 78.02 are very close to each other. The standard deviation is

also relatively small. Therefore, arithmetic mean is a better estimate of the measure of central

tendency. Mode value does not exist in the variable, and therefore it cannot be used as a measure

of central tendency in this case.

Measures of Variability for Life expectancy

Standard Deviation 3.72

Sample Variance 13.86
Range 11.85

Life expectancy has a small standard deviation at 3.72 years. The sample variance indicates that

life expectancy varies by 13.86 years. The difference between the least and the highest number

of years is 11.85. The data indicates a high level of consistency in the number of years of life

expectancy at birth. The datapoints are closely clustered around trhe mean. Therefore, the data is

not widely distributed.

Histogram for Life Expectancy at Birth, Total (Years)

Figure 1: Distribution of Life Expectancy at Birth

Histogram for Life Expectancy at birth, total (years)

16

14

12

10
Frequency

0
72.49 74.49 76.49 78.49 80.49 82.49 84.49 More
Life expectancy at birth, total (years)

The distribution of life expectancy at birth is negatively skewed. It is observed that the majority

of people in European counties will live between the age of 72 years and 85yeras. It is further

observed that the researcher tends to expect that more people will live up to the upper limit of the

average life expectancy, and fewer will die at the lower limit.
Measures of Central Tendency for Current Health Expenditure

Current health expenditure per capita (current US$)

Mean 2109.74
Median 1185.30
Mode #N/A

The arithmetic mean of current health expenditure per capita is $2109.74. The median value in

the data after arranging the values in ascending/descending order is $1185.30. The variable

(health expenditure) does not have a valid mode since no value repeats itself on the data.

The mean of $2109.74 and a median of $1185.74 are very different from each other. The

standard deviation is also high. Therefore, the central tendency's best measure is the median

since it is more representative of the data. The mode cannot be used in this variable since it does

not exist.
Measures is Variability for Current Health Expenditure

Standard Deviation 1922.69

Sample Variance 3696732.77
Range 5565.12

The results indicate a high standard deviation of $1922.69 from the mean. The sample variance

indicates that the current health expenditure varies by $3696732.77. The difference between the

least and highest current expenditure value is $5565.12. The data shows high levels of variation

between the values of current health expenditure. Therefore, the results indicate that, the data is

widly spread away from the mean.

Histogram of Health Expenditure

Figure 2: Health Expenditure

Current health expenditure per capita (current US$)

30

25

20
Frequency

15

10

0
2140 4140 6140 8140 10140 More
Current health expenditure per capita (current US$)

The distribution of current health expenditure is positively skewed. Therefore, it is evident that a

significant number of nations in the European countries spend less on healthcare, while only a

few spend much on health.

Scatter Plot

Figure 3: Scatter plot between Life expectancy and current health expenditure per capita

Scatter plot between Life expectancy at birth, total (years) and Current health
expenditure per capita (current US$)
6000.00
Current health expenditure per capita

5000.00

4000.00

3000.00
(current US$)

2000.00

1000.00

0.00
70.00 72.00 74.00 76.00 78.00 80.00 82.00 84.00

Life expectancy at birth, total (years)

The scatter plot between the two variables of interest (life expectancy at birth and current health

expenditure), shows a positive association between the variables. The scatter diagram is

produced after cleaning the data to remove the outlies. The results show that higher healthcare

expenditure tends to be associated with higher life expectancy.

Correlatuon Analysis

Table 5: Correlatuon Analysis

Current health

Life expectancy at expenditure per capita

  birth, total (years) (current US$)

Life expectancy at birth, total (years) 1
Current health expenditure per capita (current

US$) 0.8076 1

The results indicate that there is a strong positive correlation between life expectancy and health

expenditure with a correlation coefficient of ρ = 0.8076. The coefficient of determination was

obtained by finding the square of the correlation coefficient. The R-squared value (r2 = 0.80762 =

0.6522) indicate that at least 65.22% of the current health expenditure can be explained by life

expectancy at birth.
Regression Analysis

Table 6 : Regression Analysis

Regression Statistics
Multiple R 0.8076
R Square 0.6522
Adjusted R Square 0.6428
Standard Error 1149.0464
Observations 39.0000

Table 7: ANOVA

  df SS MS F Significance F
Regression 1 91624464.24 91624464.24 69.40 0.00
Residual 37 48851380.90 1320307.59
Total 38 140475845.14

Table 8: Coefficients

  Coefficients Standard Error t Stat P-value

Intercept -30511.04 3920.17 -7.78 0.00

Life expectancy at birth, total (years) 417.08 50.07 8.33 0.00

The regression analysis indicate that at least 65.22% of the current healthcare expenditure among

cities in Europe can be explained by life expectancy at birth. The results of the model were

statistically significant (p = 0.0002, α = 0.05). The regression exquation obtained from the

analysis is Health Expenditure = 417.08(Life Expectancy) – 30511.04.

Forecast

The regression model is represented using the following equation:

Health Expenditure (Y) = 417.08(Life Expectancy at Birth) – 30511.04.

By rounding off the results we get/

Health Expenditure (Y)= 400(Life Expectancy at Birth) -30500

Forecasting is done by substituting values life expectancy and health expenditure from our data

into the regression equation.

Table 9: Comparing the actual value of predicted value of dependent variable (Current health

expenditure per capita (current US$))

Life expectancy at Current health expenditure per Predicted Health

Country Name birth, total (years) capita (current US$) Expenditure

Armenia 75 -500 30000

Austria 82 2300 32800

Azerbaijan 73 -1300 29200

Belarus 74 -900 29600

Belgium 81 1900 32400

Bosnia and Herzegovina 77 300 30800

Conclusion

Correlation analysis between life expectancy and health expenditure shows a strong positive

association between the two variables, with a correlation coefficient of 0.808. The scatter plot

show that the data points tends to display a positive trend, where if the value of life expectancy

increases, the value of health expenditure also tends to increase. Further, the results indicate that

at least 65.22% of the current health expenditure can be explained by life expectancy at birth.

It is observed that the distribution of life expectancy is skewed to the left, while that of health

expenditure is skwed to the right. Threfore, majority of the cities in Europe spend less on

healthcare while only a few cities spend more on health.

All the results obtained in this study are statistically significant. Therefore, the researcher

conclude that the study provides sufficient evidence to suggest a statistically significant

relationship between current health expenditure and life expectancy at birth among the sected

cities in Europe. Therefore, it is possible to predict the estimated future health expenditure given

the values of life expectancy.