Finance Data: Parameters, Variables, Visualizations & Final Model
This document provides the measurement parameters, variable identification, recommended
visualizations, tests, and final model for the Finance_data.csv dataset.
1) Parameters (What we are measuring)
Parameter Category Description
Demographic Profile Basic characteristics of investor (age, gender)
Investment Awareness Whether the respondent invests or not
Stock Market Participation Whether respondent participates in stock
market
Investment Preference Which investment avenue is preferred more
Return Expectation Expected return level from investments
Investment Behaviour Duration of investment, monitoring habit
Decision Factors Factors affecting investment decisions
Information Influence Source of information influencing investment
2) Variables Identification
Dependent Variable (DV)
Recommended DV: Avenue (Preferred investment avenue: Mutual Fund / Equity / FD / PPF etc.)
Type: Categorical (Multiclass)
Independent Variables (IV)
Variable Type Role
gender Categorical Independent
age Numerical Independent
Investment_Avenues Categorical (Yes/No) Independent
Stock_Marktet Categorical (Yes/No) Independent
Objective Categorical Independent
What are your savings Categorical Independent
objectives?
Duration Categorical Independent
Invest_Monitor Categorical Independent
Expect Categorical Independent
Factor Categorical Independent
Source Categorical Independent
Preference scores: Numerical/Ordinal Independent
Mutual_Funds,
Equity_Market, Debentures,
Government_Bonds,
Fixed_Deposits, PF, Gold
3) Visualizations (IV vs DV)
Gender vs Avenue
Purpose: Understand how investment choice differs by gender.
Visualization: Stacked bar chart / Percentage bar chart.
Statistical test: Chi-square test (gender × avenue).
Age vs Avenue
Purpose: Identify whether age influences investment selection.
Visualization: Box plot / Violin plot.
Statistical test: One-way ANOVA; if non-normal → Kruskal-Wallis.
Duration vs Avenue
Purpose: Study impact of investment horizon on avenue choice.
Visualization: Stacked bar chart.
Statistical test: Chi-square test.
Expect (Return Expectation) vs Avenue
Purpose: Check whether high expected return leads to equity preference.
Visualization: Stacked bar chart.
Statistical test: Chi-square test.
Invest_Monitor vs Avenue
Purpose: Check if monitoring behaviour influences avenue choice.
Visualization: Stacked bar chart.
Statistical test: Chi-square test.
Factor vs Avenue
Purpose: Identify which factor (Safety/Return/Liquidity etc.) drives avenue.
Visualization: Grouped bar chart.
Statistical test: Chi-square test.
Objective vs Avenue
Purpose: Understand how savings goal decides investment avenue.
Visualization: Stacked bar chart.
Statistical test: Chi-square test.
Source vs Avenue
Purpose: Influence of information source on investment decision.
Visualization: Bar chart / Stacked bar chart.
Statistical test: Chi-square test.
Preference Scores vs Avenue (Most Important)
Purpose: Determine which preference scores predict the final avenue.
Visualization: Heatmap (mean scores), Radar chart, Grouped bar.
Statistical test: ANOVA / Kruskal-Wallis.
4) Summary Table (IV → Visualization + Test)
Independent Variable Visualization Statistical Test
gender Stacked bar Chi-square
age Box plot / violin ANOVA / Kruskal
Duration Stacked bar Chi-square
Expect Stacked bar Chi-square
Invest_Monitor Stacked bar Chi-square
Objective Stacked bar Chi-square
Factor Grouped bar Chi-square
Source Bar / stacked bar Chi-square
Preference scores Heatmap / grouped bar ANOVA / Kruskal
5) Final Multivariate Model (Final Model to be used)
Recommended model: Multinomial Logistic Regression (DV = Avenue: multiclass categorical).
Final model statement: Avenue = f(gender, age, Duration, Expect, Invest_Monitor, Objective,
Factor, Source, PreferenceScores)
[Link] Distribution:
Interpretation:
This chart shows the overall preference of respondents across different investment avenues. The
avenue with the highest count indicates the most preferred investment option, reflecting the
dominant investment behaviour in the sample. Lower bars represent avenues that are less
preferred, suggesting either low awareness, low interest, or lower perceived benefits among
investors.
[Link] vs Avenue (Stacked % Bar):
Interpretation:
This stacked percentage bar chart explains how male and female respondents differ in their
investment choices. If one investment avenue occupies a higher percentage in the male category,
it shows that males have stronger preference for that avenue. Similarly, higher percentage among
females reflects females’ investment inclination.
[Link] vs Avenue (Boxplot):
Interpretation:
The boxplot shows how age varies across different investment avenues.
If the median age is lower for an avenue (e.g., Equity), then younger investors
prefer that avenue.
If the median age is higher (e.g., FD/PPF), then older investors prefer safer
long-term instruments.
Wide spread of values indicates age diversity; narrow spread indicates that avenue is
preferred by a specific age group.
[Link] vs Avenue (Stacked % Bar):
Interpretation:
This chart explains the relationship between investment duration and preferred
avenue.
If short duration groups show more preference toward FD/Gold → it shows need
for liquidity and safety.
If long duration groups show more preference toward Mutual Funds/Equity → it
indicates willingness to hold investment for higher returns
5. Expected Return vs Avenue (Stacked % Bar):
Interpretation:
This chart shows how investor return expectations influence their avenue choice.
If respondents expecting high returns choose Equity/Mutual funds → indicates
return-driven investment behavior.
If investors expecting moderate/low returns choose FD/PPF → shows safety-
driven investment behavior.
6. Preference Score Heatmap (Mean Scores by Avenue):
Interpretation:
This chart shows how investor return expectations influence their avenue choice.
If respondents expecting high returns choose Equity/Mutual funds → indicates
return-driven investment behavior.
If investors expecting moderate/low returns choose FD/PPF → shows safety-
driven investment behavior.
[Link] vs Avenue (Stacked % Bar):
Interpretation:
This chart shows how investor return expectations influence their avenue choice.
If respondents expecting high returns choose Equity/Mutual funds → indicates
return-driven investment behavior.
If investors expecting moderate/low returns choose FD/PPF → shows safety-
driven investment behavior.
[Link] vs Avenue (Stacked % Bar):
Interpretation:
This chart indicates how the source of information influences investment choice.
If respondents relying on professional sources choose Equity/MF → indicates
informed financial decision-making.
If respondents relying on friends/family choose FD/Gold → indicates trust-based
and low-risk behaviour.