This comprehensive report explores the relationship between income level, work pattern, and expenditure using an extensive dataset to understand spending behaviour and identify significant predictors. The findings reveal a significant impact of income level on expenditure, with higher-income individuals demonstrating greater spending capacity. Work pattern also influences expenditure, with full-time employees spending the most, followed by part-time employees and the unemployed. Regression analysis identifies income level, job position, and household size as significant predictors of expenditure. However, the source of household income and house type show no statistical significance. Additional models further confirm the importance of income level, job position, and household size as predictors. Prediction analysis raises concerns about potential overfitting or unaccounted factors, emphasizing the need for further investigation and diagnostics to improve model performance. This report concludes that income level, work pattern, and job position significantly influence spending behaviour. As a result, businesses can tailor their marketing strategies based on income groups and job categories, while policymakers can utilize these findings to inform income distribution strategies. Future research should explore additional factors and evolving spending patterns to understand spending behaviour comprehensively. This analysis offers valuable insights into expenditure factors and provides recommendations for individuals, businesses, and policymakers to make informed decisions and promote financial well-being.
Contributors: IBRAHIM OYELOLA AMUSAN, NIKE OLAITAN SOBOWALE, ABOSEDE BABATUNDE, SANNI ADELAJA ADEKOYA, and TOLULOPE OREOLUWA IFAGBUYI