Name: Amos Yong Zhi Kai

SIM ID: 10215292

RMIT ID: S3834437

ECON1035 Business Statistics

1st October 2020

Assessment 3:
Impact of Commuting Time on Workers’ Psychological Health

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 Impact of Commuting Time on Workers’ Psychological Health 4

FACTORS AFFECTING WORKERS PSYCHOLOGY HEALTH

Executive Summary
This research is to develop the relationship between, Commute Time, Wage, Age with Psychology
Health. The variable included in this research Commute Time, Wage, Age as an independent variable
and Psychology Health as a dependent variable. Using the data, appropriate graphs and regression
models were created to interpret the relationship between (i) psychological health and commuting time;
(ii) psychological health and wage; and (iii) psychological health and age. Other variables were
considered as well.
1. Introduction
Psychology Health: Health psychology is a claim that centres around how science, psychology,
conduct, and social variables impact health and ailment. Different terms including clinical psychology
and social medication are occasionally utilized conversely with the term psychology health. While
infectious and inherited ailment are normal, numerous conduct and mental components can affect
generally physical prosperity and different ailments. The field of health psychology is centred around
advancing health just as the anticipation and treatment of sickness and disease. Health therapists
additionally centre around seeing how individuals respond to or how they adapt to certain situations.
Commuting Time: It is assumed that everyday commute can hurt both your physical and psychology
wellbeing. Regardless of whether it's an everyday drive or a lengthy, difficult experience trip, we invest
a great deal of energy in our vehicles. Obviously, minutes spent driving can exhaust and affect you. As
indicated by a RMIT survey, Australians go through around 66 minutes of commuting per day.
Wage: Previous examinations on the connection between pay and psychology health centre proves that
a higher salary may improve psychology health. We study low-paying workers, who have a higher
affinity of encountering psychology health issues, and the strategy analytics of the lowest pay permitted
by law to recognize the effect of a pay increment on psychology health. Joining coordinating methods
with a progression of contrast in-contrasts models, we find that the lowest pay permitted by law had
just restricted short-run impacts on the psychology health of those influenced by it.
Age: Most get through the experience without the requirement for proficient assistance, yet for some
there are longer enduring untrained psychology consequences for physical and psychology health. As
indicated by the World Health Organization, mental conditions like dementia and gloom influence 15%
of individuals matured 60 and over, and that rate is required to increase as the worldwide populace

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keeps on maturing. To convolute issues, the seriousness of these psychology problems can shift, and
accessible medicines and the board alternatives are still very restricted.
2.1 Scatter Plot

Psychological Health vs Commute Time

7
Commute Time 6
5
4
3
2
1
0
0 20 40 60 80 100 120
Psychological Health

Graph 2.1.1: Psychological Health vs Commute Time

This scatter plot shows negative linear relationship between “Psychological Health and Commute
Time”. This means if we increase Commute Time then Psychological Health will be decreased and vice
versa.

Psychological Health vs Wage Psychological Health Vs Age

140 70
120 60
100 50
Age

80 40
Wage

60 30
40 20
20 10
0 0
0 20 40 60 80 100 120 0 20 40 60 80 100 120

Psychological Health Psychological Health

Graph 2.1.1: Psychological health vs Wage Graph 2.1.1: Psychological health vs Age

The scatter plot (graph 2.2) shows positive linear relationship between “Psychological Health and
Wage”. This means if we increased wage then Psychological Health will be also increased and vice
versa.
The scatter plot (graph 2.3) shows positive linear relationship between “Psychological Health and
Age”. This means if Age increased then Psychological Health will be also increase and vice versa.

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2.2 Correlation and Covariance

Correlation
Psychological Health Commute Time Age Wage
Psychological Health 1
Commute Time -0.219317234 1
Age 0.231691269 0.180345645 1
Wage 0.117420056 -0.064016633 0.444348 1
Correlation coefficient r = 0.872 Table 2.2.1

This table shows the correlation between Psychological Health, Commute Time, Age and Wage. The
values of correlation between Psychological Health and Commute time is -0.219 (3dp) which means
there are negative and weak correlation between Psychological Health and Commute. If the values of
Psychological Health increases, then the values of Commute Time decreases.
The values of correlation between Psychological Health and Age are 0.232 (3dp) which means there
are positive and weak correlation between Psychological Health and Age. If the values of
Psychological Health increases, then values of Age also increase.
The values of correlation between Psychological Health and Wage are 0.117 (3dp) which means there
are positive and weak correlation between Psychological Health and Wage. If the values of
Psychological Health increases, then the values of Wage also increase.
Covariance
Psychological Health Commute Time Age Wage
Psychological
Health 389.8181818
Commute Time -4.509604233 1.084599123
Age 64.83501684 2.662007037 200.8805
Wage 43.30143138 -1.245249505 117.6308 348.8654
Table 2.2.2
This table shows the covariance between Psychological Health and Commute Time, Age, Wage. The
values of covariance between Psychological Health and Commute time is -4.51 (3dp) which is negative
covariance which means if there is an increase in 4.51 units in Psychological Health then Commute will
be decreased by 4.51 units.

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The values of covariance between Psychological Health and Age is 64.835 (3dp) which is positive
covariance which means if there is an increase in 64.835 units in Psychological Health then Age will be
decreased by 64.835 units.
The values of covariance between Psychological Health and Age is 43.301 (3dp) which is positive
covariance which means if there is an increase in 43.301 units in psychological Health then Age will be
decreased by 43.301 unit.
3.1 Simple Regression Between psychological health (Y) and commuting time (X)
Coefficients
Coefficient Standard Lower Upper Lower Upper
s Error t Stat P-value 95% 95% 95.0% 95.0%
3.22698 23.2464 68.6111 81.420 68.6111 81.420
Intercept 75.01583 5 2 1.94E-41 6 5 6 5
- -
Commut 1.87804 0.02917 0.4304 0.4304
e Time -4.15785 6 -2.21393 7 -7.88525 5 -7.88525 5
Estimated Regression Equations Table 3.1.1
Psychology Heath = B0 + B1 Commute Time
Psychology Heath = 75.01583 - 4.15785 Commute Time
The coefficient b(-4.158) indicates that for every unit increase in the X variable (Commute Time) the Y
variable (Psychology Health) will change by the amount of the coefficient -4.158 (3dp). It is also
referred to as the slope of the line in a simple linear equation.
B0 is the point where line starts, which is 75.016 (3dp) and B1 , the slope of line. In other words, B 1 is
the rate of change in y units as x is increased by one unit, that is -4.158.
H 0 : B0 = 0 (Not important) ; H 1 : B0 0 (Important)
Here P = 1.94E - 41 which is less than 0.05 thus, we Reject H0. It means B0 is significant (Important), it
contains some information.
H 0 : B1 = 0 (Not important) ; H 1 : B1 0 (Important )
Here P value is 0.0292 (3dp) which is greater than 0.05 So we accept H0 It means B1 is insignificant
(Important) , it contains some information.
3.2 Simple regression between (ii) psychological health (Y) and wage (X)
Coefficient

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Standard Lower Upper Lower Upper

Coefficients Error t Stat P-value 95% 95% 95.0% 95.0%
Intercept 64.85766 4.328398 14.98422 5.52E-27 56.26699 73.44833 56.26699 73.44833
Wage 0.124121 0.106586 1.164509 0.247074 -0.08742 0.335665 -0.08742 0.335665
Estimated Regression Equations Table 3.2.1
Psychology Heath = B0 + B1Wage
Psychology Heath = 64.85766 + 0.124121 Wage
The coefficient b (here 16.95) indicates that for every unit increase in the X variable (here TV spend)
the Y variable (here sales) will change by the amount of the coefficient by 16.95. It is also referred to as
the slope of the line in a simple linear equation.
B0 is the point where line starts and B1 , B2 and B3 measure the slope of line. In other words, B1 and B2
are the rate of change in y units as x is increased by one unit, that is 0.212.
Significance of Intercept (B0)
H 0 : B0 = 0 (Not important) ; H 1 : B0 0 (Important )
Here P= 5.52E–27 < 0.05, so we Reject H0. It means B0 is significant, it contains some information.
Significance of wage (B1)
H0 : B1 = 0 (Not important) ; H1 : B1 0 (Important )
Here P = 0.247074 > 0.05, so we accept H0. It means B1 is insignificant, it contains some information.
4. Multiple Regressions
Coefficient
Coefficient Standard Lower Upper Lower Upper
s Error t Stat P-value 95% 95% 95.0% 95.0%
10.4849 50.3625 50.3625
Intercept 62.12563 5.925223 4 1.53E-17 7 73.88868 7 73.88868
Commut
e Time -5.20479 1.87513 -2.7757 0.006634 -8.92739 -1.48219 -8.92739 -1.48219
2.67836 0.10638 0.10638
Age 0.411091 0.153486 7 0.008718 3 0.715799 3 0.715799
Wage -0.03307 0.114794 -0.28808 0.773916 -0.26096 0.194826 -0.26096 0.194826
Estimated Regression Equations Table 3.2.2
Psychology Heath = B0 + B1 Commute + B2 Age + B3 Wage
Psychology Heath = 62.12563 - 5.20479 Commute + 0.411091 Age - 0.03307 Wage

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Significance of Intercept (B0)

H 0 : B0 = 0 (Not important) ; H 1 : B0 0 (Important )
Here P =1.53E – 17 < 0.05 so we Reject H0. It means B0 is significant, it contains some information.
Significance of B1(Commute Time)
H 0 : B1 = 0 (Not important) ; H 1 : B1 0 (Important )
Here P value is 0.006634 which is less than 0.05 So we reject H0 It means B1 is significant (Important) ,
it contains some information.
Significance of B2 (Age)
H0: B2 = 0 (Not important) ; H 1 : B2 0 (Important )
Here P=0.008718 which less 0.05 So we Reject H0. It means B2 is significant (Important), it contains
some information.
Significance of B3 (Wage)
H 0 : B1 = 0 (Not important) ; H 1 : B1 0 (Important )
Here P value is 0.773916 which is greater than 0.05 So we accept H0. It means B3 is insignificant
(Important), it contains some information.
5.1 Multiple regression results to predict psychological health when
Commute Time = 0.5 hour Age = mean =37.737 (3dp) Wage = 36.059 (3dp)
Psychology Heath = 62.12563 - 5.20479*0.5 + 0.411091*37.73737 - 0.03307*36.05899
Psychology Heath = 73.844 (3dp)
Psychology Heath is 73.844 when the values of commute time is 0.5 hours, age is 37.737 and wage is
36.059
5.2 Multiple regression results to predict psychological health when
Commute Time =2 hour Age = mean = 37.73737 Wage = 36.05899
Psychology Heath = 62.12563 - 5.20479*2 + 0.411091*37.73737 - 0.03307*36.05899
Psychology Heath = 66.037 (3dp)
Psychology Heath is 66.037 when the values of commute time is 2 hours, age is 37.737 and wage is
36.059.
6. Extra variables
6.1) Life Satisfaction: Self-reported mental illness has been linked heavily with life satisfaction of
individuals, even though factors like wage, age and gender has been already considered. An Australian
study (OECD, 2020) found that 5% of the population has low life satisfaction. Owing to the importance

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of subjective mental health for life satisfaction, further research may be useful to understand the
relationship between the two factors. This may help to enhance public health strategies, including
mental health promotion, mental illness prevention and treatment to promote life satisfaction in the
general population. To perform the analysis, data can be pooled from several surveys. Subjects can rate
their life satisfaction from a 0-10 scale (numerical). Using an ordinal logistic regression, proportional
odds model, we can analyse the variables.
6.2) Gambling
An estimated 6.8 million Australians are regular gamblers. The harm dealt to self-private and social
costs caused by gambling has been well documented. However, some might argue that gambling not
necessarily detriments one’s psychological well-being but improves it instead. To understand the full
the impact of gambling on mental health we need to examine the impact on both the negative and
positive psychology of gamblers. A survey would be conducted to gain data, a rating of 1-10, about
one’s happiness when gambling (numerical). We then can use the coefficients from the output of a
probit regression to analyse gambling’s effect on a individual’s psychological well-being.
Conclusion
In short, Commute Time and Age is very important factor for workers psychology health. Firstly, this
research is to develop the relationship between, Commute Time, Wage, Age with Psychology Health.
The variable included in this research Commute Time, Wage, Age as an independent variables and
Psychology Health as a dependent variable. The result of scatter plot shows psychological health
negative and weak relationship with commuting and psychological health positive and weak
relationship with Age and Wage. The correlation results are also the same to the scatter plot result that
psychology is negative correlated with commute time and psychology health is positive correlated with
age and wage. Simple linear regression was used to check the effect of (1) commute time on
psychology heath, (2) Wage on psychology health. The commute time is not significantly affected on
psychology health, but wage has a serious effect on psychology health. Multiple Regression was used
to check the combined effect of commute time, age and wage. Also, the wage is not significantly
affected on psychology health but age and commute time has great effect on psychology health.
According to hypothesis test the coefficient of wage is not significant which means wage is not
important factor for psychology health. However, the coefficient of commute time and age is
significant which means commute time and age is affected on psychology health. After checking the
effect of commute time, age and wage predicted psychology health for two time 1) Psychology Heath is

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73.84426 when the values of commute time is 0.5 hours ,age is 37.73737 and wage is 36.05899 and 2)
Psychology Heath is 66.03707 when the values of commute time is 0.5 hours ,age is 37.73737 and
wage is 36.05899. Workers’ psychological health may be impacted by other factors too, like life
satisfaction or gambling habits, for example.
References

(i) Duncan B. The media and mental illness. March 2000 (www.disabilityworld.org).

(ii) Employing and accommodating workers with psychiatric disabilities. Cornell University,
School of Industrial & Labor Relations, January 1994.

(iii) ILO. World employment report, 1998-99. Employability and the global economy – how
training matters. Geneva, International Labor Organization, 1998:35.

(iv)Mulvey EP. Assessing the evidence of a link between mental illness and violence. Hospital and
Community Psychiatry, 1994, 45:663-668.

(v) Organisation for Economic Co-operation and Development, 2020, ‘How’s Life in Australia’,
OECD Better Life Initiative

(vi)World Schizophrenia Fellowship Newsletter, 3rd Quarter, 1997.

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