II.2.2. Correlation matrix
The correlation matrix denotes a weak correlation regarding
most independent variables taken one another and their correlation with the
dependent variable. They all are largely inferior to 0.5 except the correlation
between «duration in Town» and «age». Also there is a very
high correlation between both boundaries of the interval variable
«WTP». It is a mere translation of what exactly should be the trend
of both sub-dependent variables. As a unique variable computed in respect to
the principal of two side formalization, boundaries must exactly show a perfect
correlation as a proof of the rightness of one variable. Otherwise an absence
convergence would be reputed between both sub-variables. Since, it could be a
proof that results are sidestepped. As further bellow pointed (Appendix 2),
their correlation is 0,9792 what is exactly closer to 1. Additionally,
there is absence of multicollinearity. The relevance from the matrix is
minimized correlations once between the dependent and independent variables
ultimately nearby 0. For Instance, correlation between variable Trust in local
leaders and both WTP is 0 for the left boundary and 0.0042 for the right
boundary. What is right perceived as an almost neutral mutual influence in the
collection of both variables. Others variables observe the same trend as it is
typically highlighted in the matric. For instance, the value of correlation of
setting price amount and membership of an organization is 0,0050. Above and
beyond such essential validity of the quality of the data specification is
added up a new regression measuring WTP towards local leadership in the
chiefdom of Ngweshe.
II.2.3. Assessment of the mean WTP
Table five: Capture of WTP value
|
Interval regression
Number of obs = 180
Log likelihood = -457.07099
LR chi2(0) = 0.00
Prob> chi2 = .
|
|
Coef. Z P>|z|
[95% Conf. Interval
|
|
_cons 443.6262 12.27
0.000 372.7546 514.4978
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Source: Source: own primary data process in Stata
14.0.
The overhead table reveal that the avearage amount notables
are willing to yearly pay for local development through local leaders
performance is USD 443.63. The interval reveals USD 372.76 and USD 514.50 as
respectively minimum and maximum WTP. The Wald test is very higher (Z=12.27) to
which is tied a meaningful likelihood (P>|z|= 0.000). Descriptive statistics
have demonstrated upwards that the mean monthly income of a notable is USD
1864,72. It is thus understandable the amount found can be yearly consented and
issued.
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