Evaluating The Relationship of The Daily Income and Expenses of Tricycle Drivers in Angeles City

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 Instructor
Agustin, Camille V.
Gueco, Jaycee
Mangalindan, Lei Ann
Rosales, Francis Angelo
Sanchez, Nicole
September 30, 2019

I. Rationale
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. Daily income and expense of tricycle drivers

No of DAILY INCOME DAILY EXPENSE
Drivers (x) (y) x2 y2 xy
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 800 1000000 640000 800000
1505710
50 26610 17150 0 7762500 9582500
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 is 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 Angeles City

800
Daily Expense
600
f(x) = 0.5 x + 74.91
400 R² = 0.12
200
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. The relationships
of these two variables are 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.
III.4. Influential Point
Figure 1 shows the relationship between the daily income and expenses of
tricycle drivers. Point (1000,800) will be considered as the outlier since it is the
extreme values of x and y compared to other data points. It is also considered an
influential point because it greatly affects the slope of the regression lane.
Table 2. Result of Pearson r test
Correlation coefficient Critical Value Computed Value Decision Interpretation
Reject
0.35 (positive) 1.645 2.589 Ho Significant
The table above exhibits the computed value, t comp=2.589 is greater than the
critical value, tcrit= 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
Significanc
df SS MS F eF
Regressio 231520.71 231520.71 6.7411567 0.0124666
n 1 57 57 75 15
1648529.2 34344.360
Residual 48 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.
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 tcomp value 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.

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Angeles University Foundation

College of Business and Accountancy

Evaluating the relationship of the daily

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

September 30, 2019

III. Calculations and Analysis

Table 1. Daily income and expense of tricycle drivers

Formula for Pearson correlation coefficient:

Figure 1. The coordinates of independent and dependent variables

Daily Income and Expenses of Angeles City

III.4. Influential Point

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