The World Bank, through their Doing Business project (www.doingbusiness.org), ranks nearly 200 economies on the ease of doing business. One of their rankings measures the ease of starting a business and is made up (in part) of the following variables: number of required start-up procedures, average start-up time (in days), and average start-up cost (in % of per capita income). The following table gives the mean and standard deviations of these variables for 95 economies.

Here are the data for three countries.

a) Use z-scores to combine the three measures.

b) Which country has the best environment after combining the three measures? Be careful€”a lower rank indicates a better environment to start up a business.

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Time (Days) 27.9 Procedures (#) Cost (%) Mean 7.9 2.9 14.2 12.9 19.6 SD