Application of Tobit Regression on Household Expenditure on Egg and Milk Consumption in Bengkulu City

Abstract

Regression analysis is a statistical method used to examine the functional relationship between two or more independent variables and a dependent variable. One of the regression methods designed to handle censored data or data with significant zero values is Tobit regression. This study aims to model household expenditures on egg and milk consumption in Bengkulu City using Tobit regression and to identify the factors influencing these expenditures. The data were obtained from the 2022 National Socioeconomic Survey, with a total sample of 1,170 households. The Tobit regression model was chosen because most household expenditure data had zero values, indicating censored data characteristics. This study identified several factors affecting expenditures on egg and milk consumption, such as the household head's education level, the number of household members, and the household head's employment sector. The results showed that the education level of the household head (elementary, junior high, and high school), the number of household members, and the household head's employment in agriculture and trade sectors had significant impacts on household expenditures for egg and milk consumption. The education level of the household head and their employment sector had a negative relationship, while the number of household members showed a positive relationship with these expenditures. The Tobit regression model successfully modeled household expenditures with adequate accuracy, as indicated by a Mean Absolute Percentage Error (MAAPE) of 1.38%.