The Relaton Between Crime and Unemployment

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30th November 2012

Case Study
Analysis: The
relationship
between crime and
unemployment
rates

MNGT 213
Course Work

P KALYAN
CHAKRAVARTHY
BBA (B.S) 2st year
110170

INTRODUCTION
“Crime is an action or an instance of negligence that is deemed injurious to the public welfare or morals or to the interests of the state and that is legally prohibited.” Crime includes activities of assault, sexual offences, fraud, corruption, robbery with force and theft of personal property. The measure of crime is known as crime rate. “People who are willing and able to work but cannot find a job is known as unemployment.” The more the unemployment in a country the less it is developed. The main objective of this project is to study the relationship of the crime rate and unemployment rate by using various statistical tools like bar graphs, histogram, scatter plot, etc.

DATA DESCRIPTION
Secondary data of 30 country’s crime and unemployment rate across the globe have been taken. The sample size of the data is 30. Since the data is collected only for a single year (2006) the data is cross-sectional. Statistical analysis is done with the help of excel and SPSS Dependent Variable: Crime Rate

Independent Variable: Unemployment Rate

The below table shows the primary data of Crime Rate and Unemployment Rate for the year 2006 obtained from secondary research.

S.
No
1
2
3
4
5
6
7
8
9
10
11
12
13

COUNTRY
Mozambique
Zambia
Tanzania
Nigeria
Uganda
Zimbabwe
Lesotho
Swaziland
Botswana
Namibia
Egypt
South Africa
Tunisia

CRIME
RATE
58
46
63
42
47
63
34
63
34
48
36
48
54

UNEMPLOYMENT
RATE
25.3
21
29
19
21.7
27
18
30
15
22.6
18.4
24
23

14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30

Somalia
Brazil
Mexico
Russia
Colombia
Iraq
United States
United Kingdom
France
Canada
India
Georgia
Italy
Australia
Serbia
Singapore
Turkey

66
32
15
18
28
31
21
19
25
19
23
10
24
19
48
7
15

35
13
3.6
7.2
12
15
4.6
5.4
9.2
6.3
9.4
13
6.6
4.8
21.6
2.7
10

ANALYSIS
Mean: “A measure of central location computed by summing the data values and dividing by the number of observations.”
It is calculated by using the formula:

x

x

ii

n

The mean (average) crime rate for 30 countries is → 1056 ÷ 30 = 35.2 The mean Unemployment rate for 30 countries is → 473.4 ÷ 30 = 15.78

Median: “A measure of central location provided by the value in the middle when the data are arranged in ascending order.”
The formula of median for even no. of data is:
))
Therefore the median for crime rate is 33 and unemployment rate is 15.

Range: “A measure of variability, defined to be the largest value minus the smallest value.” Unemployment Rate: minimum value= 2.7; maximum value= 35.
Therefore range→35-2.7=32.3
Crime Rate: minimum value=7; maximum value=66
Therefore range→66-7=59

Descriptive Statistics
N

Minimum Maximum

Mean

Std.
Deviation

UnemploymentRate

30

2.70

35.00 15.7800

8.93715

CrimeRate

30

7.00

66.00 35.2000

17.54482

Valid N (listwise)

30

UNEMPLOYMENT RATE GRAPH

The above bar graph represents the unemployment rate for 30 countries. From the graph we can see that Somalia has the highest unemployment rate of 35 followed by Swaziland of 30 and Tanzania of 29. Somalia, Swaziland and Tanzania belong to the African content. Because of various factors like ineffective government, high illiteracy level due to poor education system, lack of technological advancement, etc. in these countries, individuals are unable to earn money to meet their financial requirements. One of the main reasons for these countries not developing is due to their high unemployment rates.

Also we can see that Singapore has the least unemployment rate of 2.7 followed by Mexico of 3.6.

CRIME RATE GRAPH

From the above bar graph we can see that Somalia has the highest crime rate of...
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