Expenditure Pattern of International Students in Australia

This report analyzes the expenditure pattern of international students in Australia through survey and regression analysis. It includes data on expenditure on rent, internet, entertainment, shopping, and travelling, as well as monthly income and demographic information. Majority of the international students belong to India and pursue post-graduation courses. Part-time courses are preferred to gain practical experience. Positive linear, causal, and functional relationships exist between expenditure variables and monthly income.

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Quantitative Methods

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Executive Summary
This report emphasizes on the analysis of the expenditure pattern of the international students in
Australia. Researcher uses survey through questionnaire method to collect the information from
20 international students which are selected randomly related to their expenditure pattern. It is
found out that there is a presence of increased number of international students who belong to
India. Along with this, from the simple regression analysis, it is found out that there is an
existence of positive linear, causal and functional relationship between the selected expenditure
variables and monthly income variable in the country.

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Table of Contents
Executive Summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
Method of Data Collection..........................................................................................................................4
Summary of the data set..............................................................................................................................7
Descriptive Data Analysis.........................................................................................................................17
Simple Linear Regression Analysis...........................................................................................................19
Conclusion and Recommendations............................................................................................................23
References.................................................................................................................................................24

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Introduction
This report emphasizes on the analysis of the expenditure patterns of international students in
Australia. For this purpose, there is a need to collect the relevant information from the
international students visited or residing in Australia to pursue their studies. The target
population consists of the international students residing in Australia in order to gather
information regarding their expenditure patterns. The main objectives of this report are as
follows:
 To gain information regarding the studies being carried out by the international students
in Australia
 To attain the information related to the expenditures made by them in different activities
 To analyze the average income earned by them in a month on an average
Method of Data Collection
There is a need to collect the information related to the expenditures made by the international
students in Australia as it facilitates in gaining information related to the existence of the
expenditure pattern of international students in Australia. The commonly used methods to collect
the information include primary and secondary method of data collection. In context of this
research study, the facts related to the topic of study is being obtained by the use of survey
through questionnaire method which consists of questions related to expenditures, income and
categorical questions (Bryman and Bell, 2015).
The data has been collected from the international students. The sample size for the research
study is 20 respondents which are being identified by the use of simple random sampling
method. This sampling approach provides equal chance to the entities to be selected to become a
participant in the research and helps in attaining the objectivity of the study as there is no

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intervention of the investigator in the selection of the sample. It is also identified that there is a
presence of the variables that can be measured in the form of quantitative terms such as
expenditure made by the students and income earned by them (Hair, Wolfinbarger, Money,
Samouel and Page, 2015).
Questionnaire
1. Gender
a) Male
b) Female
2. Which country do you belong to?
a) New Zealand
b) China
c) India
d) UK
e) Others
3. Level of Educational Qualification
a) School level
b) Post Graduate
c) Graduate
4. At present, which type of studies you are pursuing?
a) Full Time
b) Part Time
c) Correspondence
5. How much you spent on rent on a monthly basis on an average?

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a) $250 - $500
b) $501- $750
c) $750-$1000
d) more than $1000
6. How much you spent on internet on a monthly basis on an average?
a) $25-$35
b) $36-$45
c) $46-$60
d) more than $60
7. How much you spent on entertainment on a monthly basis on an average?
a) $40-$60
b) $61-$80
c) $81-$100
d) $100-$140
e) more than $140
8. How much you spent on shopping in a month?
a) $30-$50
b) $51-$70
c) $71-$100
d) more than $100
9. On an average, how much you spent on travelling in a month?
a) $25-$35
b) $36-$45

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c) $46-$60
d) More than $60
10. What is your monthly average income?
a) $250-$500
b) $501-$750
c) $751-$1000
d) more than $1000
Summary of the data set
Gender
Gender Respondents
Male 14
Female 6
It is found out that there is an existence of high number of male international students in
comparison to females in Australia.

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Country
Country Respondents
New
Zealand 3
China 5
India 8
UK 3
Others 1
It is also found out that 40% of the respondents belong to India which indicates that majority of
the international students population belong to India.
Education
Education Respondents
School
Level 4

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Post
Graduate 10
Graduate 6
It is also analyzed from the above table and pie-chart that majority of the international students
visit Australia to pursue their post graduation in different disciplines.
Type of Study
Type of Study Respondents
Full Time 3
Part Time 12
Correspondence 5

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It is also identified that majority of the international students opt for part time courses as they
carry out their profession in order to gain practical experience in their field.
Rent
Rent Respondents
$250-$500 12
$501-$750 3
$751-$1000 3
more than
$1000 2

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It is also identified that 60% of the respondents believe that they spent approximately $250-$500
in the form of rent of the accommodation on a monthly basis in Australia.
Internet
Internet Respondents
$25-$35 3
$36-$45 13
$46-$60 2
more than
$60 2

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It is also analyzed that 65% of the international students spent $36-$45 on internet in a month.
Entertainment
Entertainment Respondents
$40-$60 7
$61-$80 8
$81-$100 2
$100-$140 2
More than
$140 1

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It is also found out that 40% of the international students believe that they spent $61-$80 on
entertainment in a month.
Shopping
Shopping Respondents
$30-$50 7
$51-$70 10
$71-$100 2
More than
$100 1

QM 14
It is also found out that 50% of the respondents believe that they spent $51-$70 on shopping in a
month.
Travelling
Travelling Respondents
$25-$35 7
$36-$45 8
$46-$60 2
More than
$60 3

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It is estimated that 40% of the respondents believe that they spent $36-$45 in a month on
travelling or on transport.
Monthly Income
Income Respondents
$250-$500 5
$501-$750 4
$751-$1000 8
More than
$1000 3

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It is also found out that 40% of the respondents earn an income of $751-$1000 in a month on an
average.
Descriptive Data Analysis
Internet Entertainment Shopping
2 2 2
2 2 2
2 2 2
2 2 2
2 2 2
2 2 2
2 2 2
2 2 2
2 1 2
2 1 2
2 1 1

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2 1 1
2 1 1
4 1 1
4 1 1
1 3 1
1 3 1
1 4 4
3 5 3
3 4 3
Mean
2.15 2.1 1.85
Standard Deviation
0.812728 1.165287405 0.812728
Variance
0.660526 1.357894737 0.660526
It is identified that the three variables which are being selected to carry out the descriptive
analysis include expenditure on internet, entertainment and shopping by the way of mean,
variance and standard deviation. It is found out that the mean for the selected three variables i.e.
internet, entertainment and shopping expenditure is 2.15, 2.1 and 1.85 respectively which
indicates that the international students spent between $36-$45 on internet in a month. Apart

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from this, majority of the students spent money in a range of $61-$80 on entertainment and $30-
$50 on shopping in a month (Edjabou, Martín-Fernández, Scheutz and Astrup, 2017).
In a similar manner, the standard deviation of the variables such as expenditure on internet,
entertainment and shopping is 0.81, 1.165 and 0.81 respectively. This shows that the standard
deviation of expenditure on entertainment is highest due to which it involves high risk and there
is an occurrence of the manipulation in an increased manner. Along with this, the variance of the
three variables i.e. expenditure on internet, entertainment and shopping is 0.66, 1.35 and 0.66
respectively. This also indicates that the international students are making huge expenditure on
entertainment in comparison to other variables (Wan, Wang, Liu and Tong, 2014).
Simple Linear Regression Analysis
The linear relationship between expenditure on entertainment and monthly income is expressed
by the following equation:
y =0.45 + 0.67X
Where y denotes expenditure on entertainment and X denotes monthly income.
The linear relationship between expenditure on shopping and monthly income is denoted by the
following equation
y = 0.17 + 0.68X
Where y denotes expenditure on shopping and X denotes monthly income
The linear relationship between expenditure on travelling and monthly income is denoted by the
following equation:
y = 0.58 + 0.59X
Where y denotes expenditure on travelling and X denotes monthly income
Scatter Diagram for expenditure on entertainment and monthly income

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It is found out that with an increase in the income of the student, there is an increase in the
expenditure made by them on entertainment. This indicates that there is a presence of positive
relationship between expenditure on entertainment and monthly income (Chatterjee and Hadi,
2015).
Scatter Diagram for expenditure on shopping and monthly income
In a similar manner, there is an existence of the positive relationship between monthly income
and expenditure on shopping which means that increase in the monthly income of the student
triggers increase in the monthly expenditure made on shopping by the students (Chatterjee and
Hadi, 2015).
Scatter Diagram for expenditure on travelling and monthly income

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It is also found out that there is a presence of positive causal relationship between the
expenditure on travelling and monthly income which means that increase in monthly income
cause an increase in the expenditure on travelling (Chatterjee and Hadi, 2015).
Functional relationship between expenditure on entertainment and monthly income
Regression Statistics
Multiple R 0.606481
R Square 0.367819
Adjusted R
Square 0.332698
Standard Error 0.951906
Observations 20
It is found out that the value of R2 is 0.36 which indicates that there is an existence of very little
variability between expenditure on entertainment and monthly income (Chatterjee and Hadi,
2015).
Functional relationship between expenditure on shopping and monthly income
Regression Statistics

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Multiple R 0.884989
R Square 0.783206
Adjusted R
Square 0.771162
Standard Error 0.388785
Observations 20
It is found out that the value of R2 is 0.78 which indicates that there is a presence of significant
variability between the expenditure on shopping and monthly income (Chatterjee and Hadi,
2015).
Functional relationship between expenditure on travelling and monthly income
Regression Statistics
Multiple R 0.599045
R Square 0.358855
Adjusted R
Square 0.323236
Standard Error 0.863841
Observations 20
It is found out that the value of R2 is 0.35 which also indicates that there is a presence of low
variability between expenditure on travelling and monthly income.
The expenditure for a given level of income in case of entertainment is as follows:
When X = 21 then y = 0.45 + 0.67 *21 = 14.52

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The expenditure for a given level of income in case of shopping is as follows:
When X = 21 then y = 0.17 + 0.68X = 0.17 + 0.68 * 21 = 14.45
The expenditure for a given level of income in case of travelling is as follows:
When X = 21 then y = 0.58 + 0.59 * 21 = 12.97
Conclusion and Recommendations
It can be concluded that majority of the international students that prefer to study in Australia
belongs to India. Besides this, majority of the students go Australia to pursue their post
graduation in different disciplines. Along with this, students choose to carry out part time courses
as they indulge themselves in gaining practical experience by working in an organization. It is
also found out that majority of the students are earning income between the range of $750 -
$1000 on a monthly basis to meet out their expenditures in a month. It can also be concluded that
the relationship between the different variables related to expenditure pattern is carried out by the
use of simple regression analysis.
It can be recommended that the students should use the wi-fi facility provided by the educational
institutions which helps in reducing the expenditure made by the students on internet. Apart from
this, it is also suggested that the students should avail the accommodation facilities provided by
the universities which not only results in reducing the expenditure on accommodation but also on
travelling. In this manner, students can save the funds to meet out any risk caused by
uncertainties occurred in future.

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References
Bryman, A. and Bell, E. (2015) Business research methods. USA: Oxford University Press.
Chatterjee, S. and Hadi, A.S. (2015) Regression analysis by example. USA: John Wiley & Sons.
Edjabou, M.E., Martín-Fernández, J.A., Scheutz, C. and Astrup, T.F. (2017) Statistical analysis
of solid waste composition data: Arithmetic mean, standard deviation and correlation
coefficients. Waste Management, 69, pp.13-23.
Hair Jr, J.F., Wolfinbarger, M., Money, A.H., Samouel, P. and Page, M.J. (2015) Essentials of
business research methods. UK: Routledge.
Wan, X., Wang, W., Liu, J. and Tong, T. (2014) Estimating the sample mean and standard
deviation from the sample size, median, range and/or interquartile range. BMC medical research
methodology, 14(1), p.135.

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Appendix
Gen
der
Coun
try
Educational
Qualification
Type of
Study
Re
nt
Inter
net
Entertain
ment
Shopp
ing
Travel
ling
Inco
me
1 3 2 2 1 2 2 2 2 3
1 3 2 2 1 2 2 2 2 3
1 3 2 2 1 2 2 2 2 3
1 3 2 2 1 2 2 2 2 3
1 3 2 2 1 2 2 2 2 3
1 3 2 2 1 2 2 2 2 3
1 3 2 2 1 2 2 2 2 3
1 3 2 2 1 2 2 2 2 3
1 2 2 2 1 2 1 2 1 2
1 2 1 3 2 2 1 2 1 2
1 2 1 3 2 2 1 1 1 2
1 2 1 3 2 2 1 1 1 2
1 2 1 3 4 2 1 1 1 1
1 1 3 3 4 4 1 1 1 1
2 4 3 2 3 4 1 1 1 1
2 5 3 2 3 1 3 1 3 1
2 4 3 1 3 1 3 1 3 1
2 1 3 1 1 1 4 4 4 4
2 4 3 1 1 3 5 3 4 4

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2 1 2 2 1 3 4 3 4 4