Introduction

Diving into the world of economics doesn't have to be a snooze fest, and our proposal is here to prove just that! Picture this: a world where the price of a Big Mac unlocks the mysteries of global economies. Yes, we're talking about the Big Mac Index (BMI) - The Economist's fun yet insightful creation from 1986 that compares currency value and purchasing power across the globe, all through the lens of everyone's favorite burger.

Our proposal presents an innovative R Shiny application that leverages the Big Mac Index (BMI) as a core dataset to bridge the gap in making complex economic data accessible. The BMI, a concept introduced by The Economist in 1986, not only provides a light-hearted comparison of global currency valuations and purchasing power parity (PPP) through the cost of a Big Mac but also serves as a unique tool for economic analysis. Our project aims to extend the utility of the BMI by applying advanced clustering techniques and panel regression analysis, integrating geospatial and time series data to examine regional price variations and inflation trends closely.

By utilizing an R Shiny-based platform, we aspire to demystify intricate economic patterns for a wide audience, facilitating a deeper comprehension of global economic dynamics through engaging visual analytics. This approach allows for a more nuanced exploration of the factors affecting currency valuation and economic health worldwide, enhancing the BMI's traditional analysis framework. Our objective is threefold: to understand BMI and other economic indicators, to develop data science model for clustering and prediction, and to create an interactive dashboard that empowers users to conduct their analyses.

To achieve these goals, we draw on a variety of data sources, including the BMI, GDP metrics, global trade data, and currency exchange rates, employing a comprehensive methodology that encompasses data wrangling, exploratory and confirmatory analysis, and predictive modeling. Our project tackles limitations related to data consistency, granularity, and fiscal policy effects, offering dynamic visualizations and analytical tools that facilitate an understanding of economic indicators and trade relationships.