K-means clustering analysis and multiple linear regression model on household income in Malaysia

Household income plays a significant role in determining a country's socioeconomic standing. This measure is often used by the government to formulate the federal budget and policies that are most appropriate for national development. In spite of this, Malaysia's current economic circumsta...

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Main Authors: Gan Pei Yee, Gan Pei Yee, Rusiman, Mohd Saifullah, Ismail , Suparman, Shuhaida, Suparman, Suparman, Mohamad Hamzah, Firdaus, Shafi, Muhammad Ammar
Format: Article
Language:English
Published: 2023
Subjects:
Online Access:http://eprints.uthm.edu.my/9492/
http://eprints.uthm.edu.my/9492/1/J16020_a18540f8debfd456df2dd54f8eb422f5.pdf
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author Gan Pei Yee, Gan Pei Yee
Rusiman, Mohd Saifullah
Ismail , Suparman, Shuhaida
Suparman, Suparman
Mohamad Hamzah, Firdaus
Shafi, Muhammad Ammar
author_facet Gan Pei Yee, Gan Pei Yee
Rusiman, Mohd Saifullah
Ismail , Suparman, Shuhaida
Suparman, Suparman
Mohamad Hamzah, Firdaus
Shafi, Muhammad Ammar
author_sort Gan Pei Yee, Gan Pei Yee
building UTHM Institutional Repository
collection Online Access
description Household income plays a significant role in determining a country's socioeconomic standing. This measure is often used by the government to formulate the federal budget and policies that are most appropriate for national development. In spite of this, Malaysia's current economic circumstances continue to be characterized by income disparity. Therefore, this shortcoming can be addressed by analyzing the household income survey (HIS) conducted by Department of Statistics Malaysia (DoSM). In this study, the hybrid model is proposed where K-means and multiple linear regression (MLR) for clustering and predicting household income in Malaysia. Based on the experimental results, the K-means clustering analysis in conjunction with the MLR model outperformed the MLR model without clustering with a smaller mean square error. As a result, clustering analysis results in a more accurate estimate of household income because it reduces the variation between households. It is important that household income information reflect the concern of policymakers about the impact of universal and targeted interventions on different socioeconomic groups.
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spelling uthm-94922023-07-31T07:02:25Z http://eprints.uthm.edu.my/9492/ K-means clustering analysis and multiple linear regression model on household income in Malaysia Gan Pei Yee, Gan Pei Yee Rusiman, Mohd Saifullah Ismail , Suparman, Shuhaida Suparman, Suparman Mohamad Hamzah, Firdaus Shafi, Muhammad Ammar T Technology (General) Household income plays a significant role in determining a country's socioeconomic standing. This measure is often used by the government to formulate the federal budget and policies that are most appropriate for national development. In spite of this, Malaysia's current economic circumstances continue to be characterized by income disparity. Therefore, this shortcoming can be addressed by analyzing the household income survey (HIS) conducted by Department of Statistics Malaysia (DoSM). In this study, the hybrid model is proposed where K-means and multiple linear regression (MLR) for clustering and predicting household income in Malaysia. Based on the experimental results, the K-means clustering analysis in conjunction with the MLR model outperformed the MLR model without clustering with a smaller mean square error. As a result, clustering analysis results in a more accurate estimate of household income because it reduces the variation between households. It is important that household income information reflect the concern of policymakers about the impact of universal and targeted interventions on different socioeconomic groups. 2023 Article PeerReviewed text en http://eprints.uthm.edu.my/9492/1/J16020_a18540f8debfd456df2dd54f8eb422f5.pdf Gan Pei Yee, Gan Pei Yee and Rusiman, Mohd Saifullah and Ismail , Suparman, Shuhaida and Suparman, Suparman and Mohamad Hamzah, Firdaus and Shafi, Muhammad Ammar (2023) K-means clustering analysis and multiple linear regression model on household income in Malaysia. IAES International Journal of Artificial Intelligence, 12 (2). pp. 731-738. ISSN 2252-8938 https://doi.org/10.11591/ijai.v12.i2.
spellingShingle T Technology (General)
Gan Pei Yee, Gan Pei Yee
Rusiman, Mohd Saifullah
Ismail , Suparman, Shuhaida
Suparman, Suparman
Mohamad Hamzah, Firdaus
Shafi, Muhammad Ammar
K-means clustering analysis and multiple linear regression model on household income in Malaysia
title K-means clustering analysis and multiple linear regression model on household income in Malaysia
title_full K-means clustering analysis and multiple linear regression model on household income in Malaysia
title_fullStr K-means clustering analysis and multiple linear regression model on household income in Malaysia
title_full_unstemmed K-means clustering analysis and multiple linear regression model on household income in Malaysia
title_short K-means clustering analysis and multiple linear regression model on household income in Malaysia
title_sort k-means clustering analysis and multiple linear regression model on household income in malaysia
topic T Technology (General)
url http://eprints.uthm.edu.my/9492/
http://eprints.uthm.edu.my/9492/
http://eprints.uthm.edu.my/9492/1/J16020_a18540f8debfd456df2dd54f8eb422f5.pdf