Life-expectancy is a component of HDI. As expected there is a strong linear relationship between life-expectancy and HDI with R2-value = 0.83. Higher life-expectancy correlates with high HDI score.
High life-expectancy mean healthy and long life and is a outcome of better access to healthcare, nutrition, education etc hence a country with a high life-expectancy is expected to have a higher HDI score and vice versa. Therefore, life-expectancy is used as one of the components in our model to predict HDI.
Percentage contribution of agriculture to GDP was inversely related to HDI with R2-value = 0.67 which means if a nation's GDP is highly dependent on Agriculture then the country is expected to have lower HDI.
Strength of a country's economy is defined by advancement in industries and services and less by agricultural activities. However, agriculture still remain the major source employment in the world. Because of the strength of the relationship between agricultural contribution and HDI we decided to include agriculture in our model to predict HDI.
Relationship between per capita Gross National Income (GNI) and Human Development Index (HDI) appears weak with R2-value = 0.47 which means a country's per capita national income does not reveal much about HDI. It is true because national income does not indicate if it translates to better health, education and other HDI indicators.
GNI is one of the components of HDI therefore despite weak relationship we decided to include GNI in our model to predict HDI.
Percentage of Employment do not appear to have significant relationship with HDI with R2-value = 0.14. However, there seems to be positive correlation between them.
Employment is not use as a indicator of HDI which could be one of the limitation of the current HDI. Broad employment opportunities should impact overall standard of living within a country. Therefore, percent employment was included in our model to predict HDI.