Mathematical Journal of Modelling and Forecasting
Vol. 2 No. 2 (2024): December 2024

Application of Principal Component Analysis in Identifying Factors Affecting the Human Development Index

Faisal, Muhammad (Unknown)
Fitri, Fadhilah (Unknown)
Zilrahmi (Unknown)



Article Info

Publish Date
19 Dec 2024

Abstract

This study examines the Human Development Index (HDI) in West Sumatra Province in 2023. The HDI is an essential indicator for measuring the success of efforts to improve the quality of human life. This research aims to identify the key factors that influence the HDI. The HDI is constructed from three fundamental dimensions that indicate human quality of life: health, education, and economy. The factors within each dimension tend to be strongly correlated, as they mutually influence one another, potentially leading to multicollinearity issues. Therefore, an analysis is conducted to reduce the number of original variables into new orthogonal variables while preserving the total variance of the original variables using Principal Component Analysis (PCA). Based on this background, the study applies PCA to address multicollinearity and to identify new, more representative variables. The study findings indicate that the factors influencing the HDI are the education and economic and health welfare indexes.

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Journal Info

Abbrev

mjmf

Publisher

Subject

Computer Science & IT Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

The Mathematical Journal of Modelling and Forecasting are scientific journals in the fields of mathematics, statistics, actuarial, financial mathematics, computational mathematics, and applied mathematics. This journal is published twice a year, precisely in June and December in an online version. ...