A Linear Regression Study of the Effects of Age on Income in the Godawari Municipality, Lalitpur

Abstract

The study examined the relationship between age and income in Godawari Municipality in Lalitpur, Nepal. The research showed a correlation between age and income is positive, indicating that as people age, their likelihood of having an increasing income increases. The goodness of fit of the regression model, however, is poor, indicating that the yearly income of the respondents may possibly be influenced by other factors. The findings of the study have important ramifications for decision-makers in government, business, and for people who are preparing for their financial future. It emphasizes the value of continued study to comprehend the intricate connections between age, income, and other demographic factors. A straightforward random selection process was used to pick 2954 respondents for the survey from the municipality. In order to test a linear regression model of the effects of age on income, participants were questioned about their age and annual income. According to the model, there was an NPR 1,237 rise in income for every year that people aged, and this link was significant at the 0.05 level. Policymakers, companies, and people preparing for their financial future in the municipality should take these results seriously. The findings might be used by policymakers to guide initiatives like expanding job possibilities and social security services for senior citizens to assist aging populations.