Using Multivariate Statistical Methods for Analysing Financial Literacy, as a Possible Appearance of Social Innovation
Financial literacy is an interesting research area. In this paper my aim is to answer three important questions about financial literacy with help of statistical methods. Can it be predicted whether a country has an appropriate level of financial literacy? Can homogenous groups be identified among...
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| Format: | Article |
| Language: | English |
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University of Miskolc
2020-08-01
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| Series: | Theory, Methodology, Practice |
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| Online Access: | https://ojs.uni-miskolc.hu/index.php/tmp/article/view/1740 |
| _version_ | 1797648473787465728 |
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| author | Kitti Fodor |
| author_facet | Kitti Fodor |
| author_sort | Kitti Fodor |
| collection | DOAJ |
| description |
Financial literacy is an interesting research area. In this paper my aim is to answer three important questions about financial literacy with help of statistical methods. Can it be predicted whether a country has an appropriate level of financial literacy? Can homogenous groups be identified among the observed countries? Does the income group influence the level of financial literacy? For the prediction of financial literacy I used membership logistic regression. The two independent variables were the Human Development Index and Government expenditure on education (GDP%). I was able to achieve a classification accuracy of 88.5%. To answer my second question I created clusters and used Ward’s method to create five homogeneous groups. I identified one group with an extremely low level of financial literacy. To answer my third question I used the Chi-square test for Independence. During the analysis I came to the conclusion that financial literacy and income group are not independent of each other.
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| first_indexed | 2024-03-11T15:32:38Z |
| format | Article |
| id | doaj.art-ee4da32b3b434846b17c8e2fa9fc4323 |
| institution | Directory Open Access Journal |
| issn | 1589-3413 2415-9883 |
| language | English |
| last_indexed | 2024-03-11T15:32:38Z |
| publishDate | 2020-08-01 |
| publisher | University of Miskolc |
| record_format | Article |
| series | Theory, Methodology, Practice |
| spelling | doaj.art-ee4da32b3b434846b17c8e2fa9fc43232023-10-27T04:13:08ZengUniversity of MiskolcTheory, Methodology, Practice1589-34132415-98832020-08-01160110.18096/TMP.2020.01.02Using Multivariate Statistical Methods for Analysing Financial Literacy, as a Possible Appearance of Social InnovationKitti Fodor0University of Miskolc Financial literacy is an interesting research area. In this paper my aim is to answer three important questions about financial literacy with help of statistical methods. Can it be predicted whether a country has an appropriate level of financial literacy? Can homogenous groups be identified among the observed countries? Does the income group influence the level of financial literacy? For the prediction of financial literacy I used membership logistic regression. The two independent variables were the Human Development Index and Government expenditure on education (GDP%). I was able to achieve a classification accuracy of 88.5%. To answer my second question I created clusters and used Ward’s method to create five homogeneous groups. I identified one group with an extremely low level of financial literacy. To answer my third question I used the Chi-square test for Independence. During the analysis I came to the conclusion that financial literacy and income group are not independent of each other. https://ojs.uni-miskolc.hu/index.php/tmp/article/view/1740financial literacyclusterstatisticlogistic regression |
| spellingShingle | Kitti Fodor Using Multivariate Statistical Methods for Analysing Financial Literacy, as a Possible Appearance of Social Innovation Theory, Methodology, Practice financial literacy cluster statistic logistic regression |
| title | Using Multivariate Statistical Methods for Analysing Financial Literacy, as a Possible Appearance of Social Innovation |
| title_full | Using Multivariate Statistical Methods for Analysing Financial Literacy, as a Possible Appearance of Social Innovation |
| title_fullStr | Using Multivariate Statistical Methods for Analysing Financial Literacy, as a Possible Appearance of Social Innovation |
| title_full_unstemmed | Using Multivariate Statistical Methods for Analysing Financial Literacy, as a Possible Appearance of Social Innovation |
| title_short | Using Multivariate Statistical Methods for Analysing Financial Literacy, as a Possible Appearance of Social Innovation |
| title_sort | using multivariate statistical methods for analysing financial literacy as a possible appearance of social innovation |
| topic | financial literacy cluster statistic logistic regression |
| url | https://ojs.uni-miskolc.hu/index.php/tmp/article/view/1740 |
| work_keys_str_mv | AT kittifodor usingmultivariatestatisticalmethodsforanalysingfinancialliteracyasapossibleappearanceofsocialinnovation |