ANALYSIS ON THE ANNUAL Average FAMILY INCOME, EXPENDITURE AND

SAVING OF REGION VI, REGION VII AND REGION VIII

I. Introduction to the Study

The data come from the site of ​www.census.gov.ph​. The data is shows the annual average family
income,​ ​expenditure and saving of the three regions in the Visayas (Region VI, Region VII and Region VIII) in the
year 2012. With this information, I am aiming to answer the following problems. First, is ​there sufficient evidence
to conclude that the Annual Average Family Income affects or alter the Annual Average Family
Expenditure and Annual Average Family Saving. Second, ​will the Annual Average Family Income affect the
Annual Average Family Expenditure? And lastly, this study aims to determine if Annual Average Family
Expenditure and Annual Average Family tend to move together?

II. Methodology
a.) Anova Single Factor:
This performs a simple analysis of variance on data for two or more samples. The analysis provides a
test of the hypothesis that each sample is drawn from the same underlying probability distribution against
the alternative hypothesis that underlying probability distributions are not the same for all samples. Since
we have three variables the annual average family income,​ ​expenditure and saving​, we used Anova Single
Factor.
b.) Regression:
This analysis tool performs linear regression analysis by using the "least squares" method to fit a line
through a set of observations. You can analyze how a single dependent variable is affected by the values of
one or more independent variables. So, I used this to show if Annual Average Family Expenditure is
dependent to Annual Average Family Income.
c.) Correlation:
This analysis tool to examine each pair of measurement variables to determine whether the two
measurement variables tend to move together — that is, whether large values of one variable tend to be
associated with large values of the other (positive correlation), whether small values of one variable tend to
be associated with large values of the other (negative correlation), or whether values of both variables tend
to be unrelated (correlation near 0 (zero)). I used this test to determine if Annual Average Family
Expenditure and Annual Average Family tend to move together.
 III. Presentation of Data

a.) Anova Single Factor:

FAMILY INCOME AND EXPENDITURE (Source​:​ FIES)

2012
(in thousand pesos, at current prices)
Annual average family Annual average family Annual average family
income expenditure saving
Region 204 159 45
VI
Region 208 160 49
VII
Region 165 128 37
VIII

Anova: Single Factor

SUMMARY
Groups Count Sum Average Variance Standard
Deviation
Annual average family 3 577.0 192.33 564.33 23.76
income 0
Annual average family 3 447.0 149.00 331.00 18.19
expenditure 0
Annual average family 3 131.0 43.67 37.33 6.11
saving 0

ANOVA
Source of Variation SS df MS F P-value F crit
Between Groups 35074.6 2.00 17537.3 56.41 0.0001 5.14
7 3 3
Within Groups 1865.33 6.00 310.89

Total 36940.0 8.00

0

❖ There is sufficient evidence to conclude that the Annual average family income alter the Annual average
family expenditure and Annual average family saving​. (F=56.41, P-value= 0.00013)
b.) Regression

Annual average family Annual average family

income expenditure
204 159
208 160
165 128

SUMMARY
OUTPUT

Regression
Statistics
Multiple R 0.998

R Square 0.997

Adjusted R 0.994
Square
Standard Error 1.907

Observations 3

ANOVA
Df SS MS F Significance
F
Regression 1 1125.03 1125.0 309.25 0.04
3
Residual 1 3.64 3.64
Total 2 1128.67

Coefficient Standar t Stat P-value Lower 95% Upper Lower Upper

s d Error 95% 95.0% 95.0%
Intercept -1.91 11.10 -0.17 0.89 -142.95 139.1 -142.9 139.1
4 5 4
Annual average 1.30 0.07 17.59 0.04 0.36 2.25 0.36 2.25
family
 expenditure

❖ There is strong evidence to conclude that the Annual average family expenditure is affected by the
annual average family income. (​Significance F= 0.04)

❖ Therefore, we can conclude that for every increase in the annual average family income, there is a 1.30
or 1300 pesos increase in the annual average family expenditure. ​(Annual Average Family Expenditure
Coefficients= 1.30)

c.) Correlation

Annual average family Annual average family

expenditure saving
159 45
160 49
128 37

Annual average family Annual average family saving

expenditure
Annual average family 1
expenditure
Annual average family 0.953550031 1
saving
r-squared 0.909257661
❖ Regions with high annual average family income tend to have also higher annual average family saving.

❖ In fact, 90.9% of the variations in the annual average expenditure are accounted for by the variations in
the annual average family saving in the three regions in Visayas.

IV. Conclusion
A.)
❖ There is sufficient evidence to conclude that the Annual average family income alter the Annual
average family expenditure and Annual average family saving​. (F=56.41, P-value= 0.00013)
B.)
❖ There is strong evidence to conclude that the Annual average family expenditure is affected by
 the annual average family income. (​Significance F= 0.04)
❖ Therefore, we can conclude that for every increase in the annual average family income, there is
a 1.30 or 1300 pesos increase in the annual average family expenditure. ​(Annual Average Family
Expenditure Coefficients= 1.30)
C.)
❖ Regions with high annual average family income tend to have also higher annual average family
saving.

❖ In fact, 90.9% of the variations in the annual average expenditure are accounted for by the
variations in the annual average family saving in the three regions in Visayas.

V. References
● ​http://www.census.gov.ph/statistics/quickstat

● Microsoft.com