DISC 420-Business Analytics

Mid Term Exam

Context
The Philippine Statistics Authority (PSA) spearheads the conduct of the Family
Income and Expenditure Survey (FIES) nationwide. The survey, which is undertaken
every three (3) years, is aimed at providing data on family income and expenditure,
including, among others, levels of consumption by item of expenditure, sources of
income in cash, and related information affecting income and expenditure levels and
patterns in the Philippines.
Household income is the greatest indicator of one's socio-economic classification
that's the relevant authorities are interested in the following:
1. Exploratory analysis of relevant variables
2. Key drivers of household income
3. Best model in predicting household income
Content
Inside this data set is some selected variables from the latest Family Income and
Expenditure Survey (FIES) in the Philippines. It contains more than 40k observations
and 21 variables which primarily comprise of the household income, household
expenditures and other family and house specific information.
Data description
The variables in the data set are grouped into three categories based on the
information they provide:

 Expenditures - describes the amount of spending allocated to a seven

different commodities
 Household/family- type of family, number, age, and employment status of
family members
 House information - describes the physical structure of the house

Data source: https://www.kaggle.com/grosvenpaul/family-income-and-expenditure

Part A (8 marks, suggested time: 10 minutes)

The following questions relate to exploratory data analysis.

1
 1. Report the association between the household income and different
expenditures in the form a correlation matrix. (3 marks)

2. Use visualization to demonstrate that the household income changes with the
number of family members who are employed. Your visualization should also
exhibit how this association differs across the categories of main income
sources i.e. wages/salaries, entrepreneurial activities and other sources of
income. (5 marks)

Expected Visualization