B40 Group Income Household Trend in Malaysia
- 1. Actuarial Science Programme, Faculty of Science and Technology, Universiti Kebangsaan Malaysia, 43600 Bangi, Selangor, Malaysia. E
- 1. Publisher
Income inequality is crucial issue in the Malaysian economy. This issue has a great impact especially on the B40 group income household because of the rising cost of living today. Therefore, modelling of income data is done to look at income pattern of B40 group in Malaysia. Household income data for Malaysia in year 2007, 2009, 2012, 2014 and 2016 have been used in this study. The income distribution used in this study is a two-parameter distribution of Weibull, Log Normal, Fisk and Gamma. This study uses only two parametric distributions to suit the income data because the simplest model is better than the complex model. The best distribution selection is performed with the fitting of statistical distribution through maximum likelihood estimation (MLE) method. Goodness of fit test has been done to model B40 household income data. The best model for each year used to predict the average income in the future by using regression method. Weibull distribution is the best model for B40 household income data. The study also shows that the average income of the B40 group in the future will increase. Therefore, this study was conducted to assist B40 group to be more sensitive to the Malaysian economy and plan their income wisely.
- Is cited by
- Journal article: 2278-3075 (ISSN)
- Retrieval Number