Angeles University Foundation

College of Business and Accountancy

Department of Accountancy

EVALUATING THE RELATIONSHIP OF THE DAILY INCOME AND

EXPENSES OF TRICYCLE DRIVERS IN ANGELES CITY

A research work presented to the Mathematics in the Modern World Proctor

Agustin, Camille V.
Gueco, Jaycee
Mangalindan, Lei Ann
Rosales, Francis Angelo
Sanchez, Nicole B.

September 2019
I. Rationale

In the present times, many people look for a good opportunity or a good career to
sustain their financial needs. In this modern world, career path determines your financial
income. The good the opportunity is, the higher the income. Most people wanted to live
comfortably by having all the means to support their daily living. In this present
generation, families are becoming bigger and bigger that requires a higher income to
support for the needs of each member of the family. It has been a struggle of every head
of the family to look for an extra source of income especially in today’s modern world,
due to inflammation the costs of goods and services are getting higher. In our society
today, we can observe that majority of the tricycle drivers are head of their families. The
proponents had an idea with this observation. With this, the proponents aim to evaluate
the relationship of the daily income and expenses of the tricycle drivers around Angeles
City.

The independent variable used in the study is the daily income of the tricycle
drivers, which describes the amount of money they get from the time they start up to the
end of their labor. The dependent variable on the other hand, is the daily expenses of the
tricycle drivers. It is the amount of money they spend on a daily basis which could
depend on their income.

Ho: There is no significant relationship between the daily income and daily expenses of
tricycle drivers around Angeles City.

H1: There is significant relationship between the daily income and daily expenses of
tricycle drivers around Angeles City.

II. Procedure

In gathering the data, the researchers chose various tricycle drivers around
Angeles city which were all male and with the age range of 41 – 60 years of age. The
researchers were able to gather 50 respondents for the study. The researchers then
interviewed the respondents by asking them about their daily income and daily expenses.
This was done by handing out papers where they could put their names, daily income and
daily expenses, by this format recording the variables was made easier and ready for
interpretation. Also included in the said paper were their signatures, this was done to
show that they were interviewed with their consent. After the data was gathered, it was
tabulated using Microsoft Excel and the test was done by computing for the Pearson
correlation coefficient in order to figure out the relationship between the two variables.
The data was also interpreted using Linear Regression.
III. Calculations and Analysis

The data will be treated using weighted mean and Pearson correlation coefficient.
It is a statistical testing that measures the relationship between two continuous variables.

Table 1. Lists of daily income and expenses of tricycle drivers

No of DAILY INCOME DAILY EXPENSE x2 y2 xy
Drivers (x) (y)
1 600 500 360000 250000 300000
2 500 400 250000 160000 200000
3 600 400 360000 160000 240000
4 600 600 360000 360000 360000
5 600 500 360000 250000 300000
6 500 150 250000 22500 75000
7 500 150 250000 22500 75000
8 700 300 490000 90000 210000
9 800 400 640000 160000 320000
10 600 200 360000 40000 120000
11 610 750 372100 562500 457500
12 500 300 250000 90000 150000
13 500 150 250000 22500 75000
14 500 100 250000 10000 50000
15 600 150 360000 22500 90000
16 650 200 422500 40000 130000
17 500 50 250000 2500 25000
18 700 550 490000 302500 385000
19 500 500 250000 250000 250000
20 500 300 250000 90000 150000
21 600 200 360000 40000 120000
22 700 250 490000 62500 175000
23 600 150 360000 22500 90000
24 300 500 90000 250000 150000
25 600 400 360000 160000 240000
26 700 400 490000 160000 280000
27 600 200 360000 40000 120000
28 500 300 250000 90000 150000
29 500 700 250000 490000 350000
30 600 400 360000 160000 240000
31 300 200 90000 40000 60000
32 600 300 360000 90000 180000
33 600 500 360000 250000 300000
34 400 150 160000 22500 60000
35 500 700 250000 490000 350000
36 600 800 360000 640000 480000
 37 400 200 160000 40000 80000
38 400 100 160000 10000 40000
39 400 150 160000 22500 60000
40 200 100 40000 10000 20000
41 500 300 250000 90000 150000
42 500 250 250000 62500 125000
43 500 150 250000 22500 75000
44 400 400 160000 160000 160000
45 500 300 250000 90000 150000
46 400 400 160000 160000 160000
47 400 200 160000 40000 80000
48 350 500 122500 250000 175000
49 400 500 160000 250000 200000
50 1000 8001000000 640000 800000
50 26610 171501505710 7762500 9582500
0
r= 0.35 (LOW CORRELATION)

The table above shows the data collected of 50 tricycle drivers around Angeles
City. The daily income is represented by the variable “x”, and the daily expenses are
represented by the variable “y” with the sum of 26610 and 17150 respectively. To
compute for the value of r, the researchers will get the summation of the square of the
values of x and y having the result of 15057100 and 7762500. The computed Pearson
correlation coefficient is 0.35, meaning that it has low correlation.

Formula for Pearson correlation coefficient:

Computation for r:
Figure 1. The coordinates of independent and dependent variables

Daily Income and Expenses of a Tricycle Drivers Angeles City

900
800
700
Daily Expense

600
500 f(x) = 0.5 x + 74.91
R² = 0.12
400
300
200
100
0
100 200 300 400 500 600 700 800 900 1000 1100
Daily Income

The figure above display the plotted coordinates of income and expenses of the
drivers. It shows an illustration of positive linear correlation. Since it has a positive
correlation, the relationship now of these two variables is directly proportional. As the
value of x (income) increases the value of y (daily expenses) also increases. Stating that
the daily income will be the independent variable and the daily expense will be the
dependent variable.

Figure 2. The comparative scatter plot of with and without influential point
 Without Influential Point
900
800
700
600
500
400
f(x) = 0.34 x + 154.93
300
R² = 0.05
200
100
0
100 200 300 400 500 600 700 800 900

With Influential Point

900
800
700
600
500 f(x) = 0.5 x + 74.91
400 R² = 0.12
300
200
100
0

Figure 2 shows the relationship of the daily income and expenses of tricycle
drivers with and without outlier. The coordinates of x= 1000 and y=800 will be
considered as the outlier since it is the extreme values of x and y compared to other
plotted data. It is also considered as an influential point because it greatly affects the
slope of the regression lane. If the preceding single outlier is removed from the graph, the
coefficient of determination is smaller when it has an outlier (0.046 vs. 0.119). In
addition, the scatter plot without influential point manifested to have a flatter slope than
the graph with influential point (0.336 vs. 0449).

Table 2. Result of Pearson r test

Correlation coefficient Critical Computed Value Decisio Interpretatio
Value n n
0.35 (positive) 1.645 2.589 Reject Significant
Ho

The table above exhibits the computed value, tcom=2.589 is greater than the critical
value, tcri= 1.645. Thus, this indicates that the null hypothesis is rejected. It can be
inferred that there is a significant relationship between the tricycle drivers’ daily income
and expenses.

Table 3. Result of regression

ANOVA
df SS MS F Significan
ce F
Regressi 1 231520.71 231520.71 6.7411567 0.0124666
on 57 57 75 15
Residual 48 1648529.2 34344.360
84 09
Total 49 1880050

P value of .001 for the statement ‘Relationship between the daily income and
expenses of tricycle drivers’ shows that there is a significant difference between income
and expenses of tricycle drivers.

IV. Conclusion

After conduction the study in Angeles city, the researchers observed that tricycle
drivers around the city spend based on their income. Some have high expenses and some
budget their income wisely. Overall, based on the data gathered by the researchers, it
shows that the higher the income the higher they spend. It is based on the tabulated and
computed data. It shows that there is low correlation between the daily income and daily
expenses of the tricycle drivers due to the fact that the Pearson correlation coefficient is
0.35 which depicts low correlation based on the interpretation table.
 Based on the tcompvalue of 2.589 and the tcrit value of 1.645, the researchers
concluded that the null hypothesis must be rejected. This leads to the alternative
hypothesis being accepted which means that there is a significant relationship between
the Tricycle Drivers’ daily income and expenses.

One possible alternative would be using solely gas expense as the dependent
variable. This is to study how impactful does gas expense affect their net profit and their
mode of operation. Other variables such as food expenses, bills, and other minor
expenses could be a good substitute for total expenses in order to identify what expense
really affects their income.

Furthermore, the researchers suggest that data could be gathered in a monthly

basis. This can be done on another study in order to determine how well or how bad do
they manage their income and expenses in a monthly basis. This could also be used to
determine if tricycles drivers can be financially stable to support their families or their
own.