Startistics for Management and

Economics (MEC20005)
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INDIVIDUAL PROJECT
PRESENTATION
START
22110002 Enkh-Erdene Dalantainyam
 Overview PAGE 02

Variables of the study

Interpretation
Theory and hypothesis
Implication of my study
Regression Analysis
 Variables
Dependent (J1)
Overall satisfaction with personal financial
condition is rated on a 10-point scale, where
1 means 'Not At All Satisfied' and 10 means
'Extremely Satisfied.' The theory suggests
that individuals with more financial
resources and better financial management
practices generally report higher satisfaction
with their financial situation.
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Independent (B2)
Whether the household has a savings
account, money market account, or CDs.
This variable reflects the presence of basic
financial instruments for saving, which is
an expected to positively correlate with
financial satisfaction.
 Control Variables PAGE 04

Variable 1 (A8)

Annual income level Variable 2 (M20)

Presense of financial
education
 Theory and Hypothesis
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Theory Hypothesis
Individuals with financial instruments like savings
We predict that individuals with these financial
accounts, money market accounts, or CDs tend to
instruments will report higher levels of financial
have higher financial satisfaction due to increased
satisfaction compared to those without them.
financial security.
 Regression Analysis
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let's talk significance: The F-statistic of 125.1 with a tiny p-value (1.12e-75) means
our model is statistically significant. Plus, all coefficients (const, B2, A8, and M20)
have p-values below 0.05, showing they're reliable predictors of J1.
Breaking down the coefficients:
The intercept is roughly 6.7089, meaning when all predictors are zero, J1 is
expected to be around 6.7089.
For B2, every one-unit increase leads to J1 dropping by about 0.6437, keeping
other factors constant.
A8 shows that each unit rise boosts J1 by about 0.3574, assuming everything else
stays the same.
And M20 suggests a one-unit increase correlates with a J1 decrease of
approximately 0.1861, with other factors unchanged.
R-squared Value: The model's R-squared value is 0.126.
Interpretation: This means that 12.6% of the variation in financial satisfaction is
explained by whether a person has a savings account, their income level, and
their financial education.
 Interpretation PAGE 09

Each coefficient represents the change in the dependent variable (financial satisfaction) for a one-unit change in the
predictor variable, holding all other variables constant.
Intercept (6.7089): This is the baseline financial satisfaction when all predictors are zero.
Savings Account (B2: -0.6437): Surprisingly, having a savings account is linked to a slight decrease in financial
satisfaction by about 0.64 units. This might be due to underlying socio-economic factors that need further
exploration.
Annual Income (A8: 0.3574): Higher annual income boosts financial satisfaction by 0.36 units per unit increase in
income, highlighting the positive impact of higher earnings.
Financial Education Level (M20: -0.1861): A higher level of financial education slightly decreases financial
satisfaction by 0.19 units. This might be because financially educated individuals have higher expectations.
Statistical Significance
P-values: All predictors (B2, A8, and M20) are statistically significant (p-values < 0.05), confirming their reliable
effect on financial satisfaction.
 Implication PAGE 09

For Individuals:
Savings Account: Simply having a savings account may not increase satisfaction. Focus on effective
financial management.
Annual Income: Higher income boosts satisfaction. Aim for income growth and career advancement.
Financial Education: Higher education can lower satisfaction due to higher expectations. Balance education
with realistic goals.
For Corporations:
Employee Well-being: Offer financial literacy programs to improve employee satisfaction.
Compensation: Higher income improves satisfaction. Use this to guide better compensation strategies.
For Government:
Financial Education: Invest in financial education but manage expectations to avoid dissatisfaction.
Income Policies: Policies that increase household income can enhance overall financial satisfaction.
THANK YOU
SO MUCH!