Multiple Local Polynomial Regression Modelling: Case of Life Insurance Uptake in Kenya, Uasin Gishu County
American Journal of Theoretical and Applied Statistics
Volume 5, Issue 6, November 2016, Pages: 354-358
Received: Sep. 26, 2016; Accepted: Oct. 5, 2016; Published: Oct. 27, 2016
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Authors
Willy Thuitai, Department of Statistics and Actuarial Science, Jomo Kenyatta University of Agriculture and Technology (JKUAT), Nairobi, Kenya
Anthony Gichuhi Waititu, Department of Statistics and Actuarial Science, Jomo Kenyatta University of Agriculture and Technology (JKUAT), Nairobi, Kenya
Anthony Wanjoya, Department of Statistics and Actuarial Science, Jomo Kenyatta University of Agriculture and Technology (JKUAT), Nairobi, Kenya
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Abstract
In Kenya life insurance has contributed widely and still remains a vital aspect of the social-economic development of the society. It focuses on safe- guarding the future as well as ensuring that there is some savings that can be used later in life. Despite its importance, the penetration of life insurance is currently only at one point three percent in Kenya. This is a small percentage in comparison to the developed countries where life insurance penetration is quite high. In this research, local regression (LOESS) method was used. LOESS specifically denotes a method that is also known as locally weighted polynomial regression. At each point in the data set a low-degree polynomial is fitted to a subset of the data, with explanatory variable values near the point whose response is being estimated. In local polynomial regression, a low-order weighted least squares(WLS) regression is fit at each point of interest using data from some neighbourhood around x. The value of the regression function for the point is then obtained by evaluating the local polynomial using the explanatory variable values for that data point. In this research income, education, age and marital status were found as the major factors associated with low insurance intake in Uasin Gishu County. The research highly recommends the insurance companies to apply the knowledge of LOESS to determine the major factors associated with low life insurance uptake in the country. Insurance companies should strive to provide educative seminars to the public to increase life insurance uptake. In this research we had uptake of life insurance as dependent variable and level of income, education level, age and marital status being independent variables.
Keywords
Locally Weighted Regression, LOESS, Multivariate Loess Surface, Multiple Local Polynomial Regression
To cite this article
Willy Thuitai, Anthony Gichuhi Waititu, Anthony Wanjoya, Multiple Local Polynomial Regression Modelling: Case of Life Insurance Uptake in Kenya, Uasin Gishu County, American Journal of Theoretical and Applied Statistics. Vol. 5, No. 6, 2016, pp. 354-358. doi: 10.11648/j.ajtas.20160506.14
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Copyright © 2016 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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