CHAPTER I
INTRODUCTION
RATIONALE
Eve, a first year Mass Communication student of the University of the Philippines Cebu is categorized under Bracket A in the university’s STFAP. Her bracket assignment shows that her parents have an annual gross income of P1, 000, 000 or above. She points out that she does not really think about how much money she will spend in the course she chose. Payments and other fees are also not entirely her main concern in choosing a college course. On the other hand, Claire, a first year Management student of the same university is categorized under Bracket E₂. This bracket assignment entitles students having an annual gross family income of P50, 000 or less with free tuition fee and monthly stipend. Unlike Eve, she thinks twice about how much money she will spend in the course she chose to enroll. She also considers payments and other fees as top priority in choosing a college course.
Economic status defines the life of an individual in such a way that one will always refer to his/her financial stakes as regards to his decisions. It is the factor which deeply shapes his/her lifestyle and alters his/her preferences. He/she will weigh down his/her choices depending on what is covered within the boundaries of his/her economic status and if not, he/she will come to find alternatives in order to serve his/her needs. Most of the time, an individual bends his/her supposedly first preference in order to make way for other more important implications. In most cases, these more important implications include food for the family, healthcare, and education for all. It is when the other member of the family also needs a portion of the meager family income that the individual is forced to adjust his/her preferences. His/her choices will always reflect his/her financial background because one is always careful not to give out more than what he takes in.
While it is true that man’s place in society is entirely determined by the amount of money he/she takes in to meet his/her basic needs and to provide for his/her family, economic status alone is not the only factor which proves to be essential in the decision-making of an individual. As stated by Paulma (1992), there are institutional as well as personal factors pinpointed as major influences to the choices an individual makes, some of these include the influences of other people, the prestige of the college, the individual’s skills and abilities which relate to his/her choice of college course and sometimes though, his/her choice of college course may also be due to mere uncertainty. It is deemed important to include these factors in this study in order to fully understand the impact of economic factors and more so, socially-related factors in the decision-making of students.
The students’ choice of college course is a crucial part of their decision-making because it is considered by most people as the first real decision that every privileged individual has to face. In the world culture, education is a major concern to all types of families, regardless of their financial capacity. Parents, those who are fortunate enough to claim cultural investments, give extra effort to send their children to good schools which serves standard and quality education. Those who are not culturally and economically fortunate, those who only earn a meager income even in a long day’s work are also noted to make extra effort in sending their children to school, maybe to schools which fall short behind other well-established institutions but offers education nonetheless. Parents also see education especially college education as the tool to achieve successes in life. It is seen by most to be one of the effective means of getting out from a poverty-driven society and to enjoy the best of what life has to offer. There is ofcourse, nothing better than having a college degree. It will improve and redefine an individual’s perspective in life. He will get to interact with different kinds of people which will prove to be very helpful in his future. And most importantly, he will get to appreciate and learn many things in his college experience. This only goes to show that education, most especially college education is not just the Filipino dream but as well as the world’s. Choosing a college course is therefore labeled to be a crucial part in the process of decision-making because many factors are compromised, some even given up, in order to land the college course which best fits the individual and his family’s capacity to support his education.
This study aims to determine the relationship of economic status and the students’ choice of college course and to understand the many implications an individual undergoes in order to make his/her choices suitable for his/her and his/her family’s cause. There are varying factors as to why and how students land their respective college courses, yes, but the study conducted by Rojewski (1997) on The Effects of Economic Disadvantaged Status and Secondary Vocational Education on Adolescent Work Experience and Post-Secondary Aspirations showed that it all boils down to the individual’s economic status to mold his/her decision-making. More than a few studies, including that of Rojewski (1997), Weinger (2000) and others have been conducted to try and determine the relationship between one’s economic status and one’s preferences. But preference is too broad a word that it is necessary to break it down into smaller, more concise pieces. That is why we have come down to the choice of college course in order to represent a small yet crucial part of an individual’s preference and decision-making.
STATEMENT OF THE PROBLEM
This study aims to determine the influence of economic status to the choice of course of first year UP Cebu students.
Specifically, it aims to answer the following questions:
Does economic status influence the choice of course of first year UP Cebu students?
If yes, in what way does it influence the students’ choice of course?
If no, what are the other factors that influence the choice of course of first year UP Cebu students?
SIGNIFICANCE OF THE STUDY
This study aims to determine the relationship between the economic status and the choice of course of first year UP Cebu students. This will aid in understanding the impact of the students’ economic status as regards to their choice of college course. It will highlight the effects of financial constraints in education, which is first and foremost a free right for everyone.
This study will open opportunities for the lower economic class to be given the chance to pursue their fields of specialty regardless of their financial incapability. This will serve as an eye-opener to the other factors that adolescents consider in choosing their college course aside from that of their own, personal choices.
The underlying aim of this study is to make visible the effects of belonging in the lower economic class to an individual’s choices not just as regards to his education but more so, to the many decision he undertakes.
Wednesday, March 30, 2011
Monday, March 14, 2011
chapters 3 & 4
CHAPTER III
STUDY FRAMEWORK
Kahneman and Tversky’s Classical Utility Theory
Kahneman and Tversky’s Classical Utility Theory state that an individual’s decisions are mostly dependent upon economic factors. This is basically because economic factors determine the most suitable choice for the individual. Classical utility theory looks at decision making as choices between prospects and says the economic reason for selecting choice “A” over choice “B” is because the decision-maker has an expectation that “A” will produce greater utility than “B”, and that selecting “A” adds to overall utility – in that it doesn’t work against the utility we currently enjoy. Indeed, the normative model of rational choice assumes most people both should and do operate as classical economists say and make decisions based on maximizing utility.
In a series of experiments done in order to testify to Kahneman and Tversky’s Classical Utility Theory, it was found out that the subjects disproportionately maintained the influence of their status quo when presented with alternatives. In these series of experiments, it was found out that the status quo had a predictable and large effect on decision-making. It was also found out that the more choices the subjects were given, the stronger the bias for maintaining the status quo.
Ellsberg’s Theory of Ambiguity Effect
Ellsberg’s Theory of Ambiguity Effect which states that there are vital factors on which an individual base his decisions. These vital factors, in turn, should be known to an individual in order to influence him the choice he makes. This is because the decision making is affected by the information gathered or the lack of information about certain matters. It is the nature of the person to lean his decision on the side by which he assumes to have favorable outcomes. He wants to make sure that his decision would benefit him and not the opposite. On the other hand, when he is also unsure of the outcome, he usually assumes that it would be unfavorable for him. Thus, he does not choose it over the latter.
Ellsberg’s Theory of Ambiguity Theory is also known as heuristic. It is termed heuristic because it also refers to experience-based techniques for problem solving, learning, and discovery. exhaustive search is impractical. Examples of this method include using a "rule of thumb", an educated guess, an Heuristic methods are used to speed up the process of finding a good enough solution, where an intuitive judgment, or common sense. In more precise terms, heuristics are strategies using readily accessible, though loosely applicable, information to control problem solving in human beings and machines.
With the knowledge on the vital factors which influence decision making, The person will be able to land a most suitable decision. An individual is then dependent on the information he gains on certain choices. In many cases, though, the information he ought to seek cannot be supplied.
THEORETICAL FRAMEWORK
Among the number of theories which claim to explain the process of decision making undergone by an individual, the Kahneman and Tversky’s Classical Utility Theory are two of the most highly renowned in the world. This is basically why the proponents have chosen these two theories to explain further the relationship between the economic status and the decision making of individuals.
Kahneman and Tversky’s Classical Utility Theory explains the impact of economic factor in the decision making of individuals. This is most evident in such a way that the decisions made by an individual are basically dependent on his capacity to sustain his decision. One cannot land a decision that is beyond his economic boundaries. An individual is always tied to his financial capacity because this is what determines the decisions he will make. This theory also states that status quo is a critical reference point in the decision making of individuals. Status quo, for this matter, is the standpoint of an individual in his society. This is thoroughly determined by his economic status.
Ellsberg’s ambiguity theory states that there are economic reasons behind certain decisions. As regards to his economic background, he therefore considers two of the outcomes: the favorable outcome and the unfavorable outcome. The effects of the given information would gear towards the decision that the person would make. He thinks of two general outcomes: the favorable and the unfavorable. Usually, the favored outcome is chosen. It is easier for anyone to choose it because they have a feeling of relief rather than choosing the one which is unfavorable.
Fig. 1 Theoretical Framework
Conceptual Framework
There may be a correlation in the decision making and the economic status of a person. There is a theory on the impact of economic status on decision-making by Kahneman & Tversky’s which is the Classical Utility Theory. This theory states the impact of Economic reasons for selecting certain choices. Behavioral economics says decisions are strongly influenced by the point
of reference against which the decision is judged, and that reference point is often the status quo.
On the other hand, a theory on the influence of factors in process of decision making or the theory of Ambiguity effect by Daniel Ellberg can show the vital factors that affect decision making. These are the economic and social factors gathered from different sources. These informations are from their parents, friends, peers, mentors and the media. After consolidating all these, they have come up with the presumed favorable or unfavorable outcomes. It is his nature to choose the former over the latter that is why he avoids making the choices which will lead him to be in unfavorable situations.
In addition, economic status is not the only factor that is deemed important for the choice of college course. There are still other factors which college entrants consider, such as the influences of their peers and families. They regard others’ opinions and use them to aid their decision as to what course to take in college.
Fig. 2 Conceptual Framework
Operational Framework
It is specified that there is a correlation in the decision making of first year UP Cebu students and their economic status. According to the classical utility theory, the economic status has an impact on the decision making of a person. First Year UP Cebu Students consider their economic status in choosing a course. Their Economic Status is determined by their STFAP bracket assignment.
In the theory of ambiguity effect, it is elaborated that there may be a correlation between the choice of course and the economic status because these factors are vital in the process of decision making. These factors include: less payments, scholarships offered and job opportunities in the chosen course. In the courses offered in the University of the Philippines-Cebu, there are quiet some differences in these opportunities offered to different courses. Scholarships like DOST (Department of Science and Technology) scholarships are offered only for the BS Computer Science, BS Math and BS Biology courses which may affect the choice of course of 1st year UP Cebu students.
In addition, some people gather information from family members, peers and friends that taking up a certain course would give him more job opportunities when he finishes college compared to other courses. Some information may be factual or not, but these informations greatly affect the decision making of 1st year UP Cebu students.
Many would also consider if taking up a certain course would require him to spend minimum amount. He would consider lab fees, expensive requirements and the like that are required in taking up a certain course. If he cannot sustain the payments, he would likely not take up that certain course.
Fig. 3 Operational Framework
CHAPTER IV
METHODOLOGY
Respondents and Locale of the Study
The respondents are 56 first year college students or 20% of the whole first year population of the University of the Philippines Cebu enrolled in all courses offered by the university. This study covers the whole population consisting of 266 enrollees for the 2nd semester of the SY 2010-2011 only. The population is divided into eight courses with these corresponding enrollees: 54 in BS Management, 35 in BS Biology, 17 in BS Math, 50 in BS Computer Science, 21 in BA Political Science, 35 in BA Psychology, 31 in Mass Communication and 23 in Fine Arts.
Sampling Procedure
A stratified random sampling technique is utilized in this study. This is a method of a sampling in which the population is divided into smaller groups. In stratified random sampling, the groups are formed based on members' common characteristics. A random sample from each stratum is taken in a number proportional to the population’s size. These subsets of the strata are then pooled to form a random sample. The respondents are randomly selected from a master list of the University of the Philippines Cebu first year students provided by the University’s College Secretary Office (CSO). The researchers select 20% of the whole first year population or 56 respondents from the university.
Research Design
This study adopts the correlational survey design. This design uses survey questionnaires that are distributed to the respondents. Its main objective is to determine the relationship between the economic status and the choice of course of first year University of the Philippines Cebu students. This study also aims to identify the other factors which have possibly influenced their choice of course.
A focus group discussion is then conducted to support the initial data gathered by the questionnaire. The discussion is also used to gather more information from the respondents that are not revealed in their answers.
Data Collection
Each of the randomly selected respondents is given a questionnaire which they are tasked to fill up and to provide with accurate information.
The respondents are then divided into groups of five for the focus group discussion. The researchers decided that it is essential to conduct a focus group discussion limited to five people in order to create a more personal and comfortable atmosphere within the group. This has also prodded the respondents to provide more information than what they have initially provided in the questionnaire. The allotment for the collection of data will be for two weeks.
Having gathered all the necessary data, the researchers classified the responses according to the relationship of their economic status to their choice of course.
Instrumentation
In order to determine the relationship of the students’ economic status with their choice of course, questionnaires are distributed for the respondents to answer. The questionnaire is divided into three parts; personal information, financial background and choice of college course accordingly.
The first part of the questionnaire determines the personal information of the respondents which comprises name, age, sex and their course and year. The second part determines their financial background basing from their STFAP bracket assignment. The third part is in Likert Scale form, wherein the respondents indicated whether they strongly agree, agree, are undecided, disagree, or strongly disagree to the given statements. The statements given in the questionnaire are factors which are broken down to further emphasize the relationship between the students’ economic status and their choice of college course and to promote consistency as regards to the respondents’ answers.
Data Analysis
In order to determine the relationship between the economic status and the choice of course of first year University of the Philippines Cebu students, the answers in the questionnaires coupled with the focus group discussion are grouped accordingly.
The respondents’ STFAP bracket assignment and their answers in the Likert Scale on the questionnaires are duly compared and analyzed with the aid of The Statistical Package for the Social Science Software (SPSS).
The respondents’ answers in the focus group discussion are also classified under these factors: economic factor, others’ influence, prestige of the college, skills and abilities related and uncertainty.
STUDY FRAMEWORK
Kahneman and Tversky’s Classical Utility Theory
Kahneman and Tversky’s Classical Utility Theory state that an individual’s decisions are mostly dependent upon economic factors. This is basically because economic factors determine the most suitable choice for the individual. Classical utility theory looks at decision making as choices between prospects and says the economic reason for selecting choice “A” over choice “B” is because the decision-maker has an expectation that “A” will produce greater utility than “B”, and that selecting “A” adds to overall utility – in that it doesn’t work against the utility we currently enjoy. Indeed, the normative model of rational choice assumes most people both should and do operate as classical economists say and make decisions based on maximizing utility.
In a series of experiments done in order to testify to Kahneman and Tversky’s Classical Utility Theory, it was found out that the subjects disproportionately maintained the influence of their status quo when presented with alternatives. In these series of experiments, it was found out that the status quo had a predictable and large effect on decision-making. It was also found out that the more choices the subjects were given, the stronger the bias for maintaining the status quo.
Ellsberg’s Theory of Ambiguity Effect
Ellsberg’s Theory of Ambiguity Effect which states that there are vital factors on which an individual base his decisions. These vital factors, in turn, should be known to an individual in order to influence him the choice he makes. This is because the decision making is affected by the information gathered or the lack of information about certain matters. It is the nature of the person to lean his decision on the side by which he assumes to have favorable outcomes. He wants to make sure that his decision would benefit him and not the opposite. On the other hand, when he is also unsure of the outcome, he usually assumes that it would be unfavorable for him. Thus, he does not choose it over the latter.
Ellsberg’s Theory of Ambiguity Theory is also known as heuristic. It is termed heuristic because it also refers to experience-based techniques for problem solving, learning, and discovery. exhaustive search is impractical. Examples of this method include using a "rule of thumb", an educated guess, an Heuristic methods are used to speed up the process of finding a good enough solution, where an intuitive judgment, or common sense. In more precise terms, heuristics are strategies using readily accessible, though loosely applicable, information to control problem solving in human beings and machines.
With the knowledge on the vital factors which influence decision making, The person will be able to land a most suitable decision. An individual is then dependent on the information he gains on certain choices. In many cases, though, the information he ought to seek cannot be supplied.
THEORETICAL FRAMEWORK
Among the number of theories which claim to explain the process of decision making undergone by an individual, the Kahneman and Tversky’s Classical Utility Theory are two of the most highly renowned in the world. This is basically why the proponents have chosen these two theories to explain further the relationship between the economic status and the decision making of individuals.
Kahneman and Tversky’s Classical Utility Theory explains the impact of economic factor in the decision making of individuals. This is most evident in such a way that the decisions made by an individual are basically dependent on his capacity to sustain his decision. One cannot land a decision that is beyond his economic boundaries. An individual is always tied to his financial capacity because this is what determines the decisions he will make. This theory also states that status quo is a critical reference point in the decision making of individuals. Status quo, for this matter, is the standpoint of an individual in his society. This is thoroughly determined by his economic status.
Ellsberg’s ambiguity theory states that there are economic reasons behind certain decisions. As regards to his economic background, he therefore considers two of the outcomes: the favorable outcome and the unfavorable outcome. The effects of the given information would gear towards the decision that the person would make. He thinks of two general outcomes: the favorable and the unfavorable. Usually, the favored outcome is chosen. It is easier for anyone to choose it because they have a feeling of relief rather than choosing the one which is unfavorable.
Fig. 1 Theoretical Framework
Conceptual Framework
There may be a correlation in the decision making and the economic status of a person. There is a theory on the impact of economic status on decision-making by Kahneman & Tversky’s which is the Classical Utility Theory. This theory states the impact of Economic reasons for selecting certain choices. Behavioral economics says decisions are strongly influenced by the point
of reference against which the decision is judged, and that reference point is often the status quo.
On the other hand, a theory on the influence of factors in process of decision making or the theory of Ambiguity effect by Daniel Ellberg can show the vital factors that affect decision making. These are the economic and social factors gathered from different sources. These informations are from their parents, friends, peers, mentors and the media. After consolidating all these, they have come up with the presumed favorable or unfavorable outcomes. It is his nature to choose the former over the latter that is why he avoids making the choices which will lead him to be in unfavorable situations.
In addition, economic status is not the only factor that is deemed important for the choice of college course. There are still other factors which college entrants consider, such as the influences of their peers and families. They regard others’ opinions and use them to aid their decision as to what course to take in college.
Fig. 2 Conceptual Framework
Operational Framework
It is specified that there is a correlation in the decision making of first year UP Cebu students and their economic status. According to the classical utility theory, the economic status has an impact on the decision making of a person. First Year UP Cebu Students consider their economic status in choosing a course. Their Economic Status is determined by their STFAP bracket assignment.
In the theory of ambiguity effect, it is elaborated that there may be a correlation between the choice of course and the economic status because these factors are vital in the process of decision making. These factors include: less payments, scholarships offered and job opportunities in the chosen course. In the courses offered in the University of the Philippines-Cebu, there are quiet some differences in these opportunities offered to different courses. Scholarships like DOST (Department of Science and Technology) scholarships are offered only for the BS Computer Science, BS Math and BS Biology courses which may affect the choice of course of 1st year UP Cebu students.
In addition, some people gather information from family members, peers and friends that taking up a certain course would give him more job opportunities when he finishes college compared to other courses. Some information may be factual or not, but these informations greatly affect the decision making of 1st year UP Cebu students.
Many would also consider if taking up a certain course would require him to spend minimum amount. He would consider lab fees, expensive requirements and the like that are required in taking up a certain course. If he cannot sustain the payments, he would likely not take up that certain course.
Fig. 3 Operational Framework
CHAPTER IV
METHODOLOGY
Respondents and Locale of the Study
The respondents are 56 first year college students or 20% of the whole first year population of the University of the Philippines Cebu enrolled in all courses offered by the university. This study covers the whole population consisting of 266 enrollees for the 2nd semester of the SY 2010-2011 only. The population is divided into eight courses with these corresponding enrollees: 54 in BS Management, 35 in BS Biology, 17 in BS Math, 50 in BS Computer Science, 21 in BA Political Science, 35 in BA Psychology, 31 in Mass Communication and 23 in Fine Arts.
Sampling Procedure
A stratified random sampling technique is utilized in this study. This is a method of a sampling in which the population is divided into smaller groups. In stratified random sampling, the groups are formed based on members' common characteristics. A random sample from each stratum is taken in a number proportional to the population’s size. These subsets of the strata are then pooled to form a random sample. The respondents are randomly selected from a master list of the University of the Philippines Cebu first year students provided by the University’s College Secretary Office (CSO). The researchers select 20% of the whole first year population or 56 respondents from the university.
Research Design
This study adopts the correlational survey design. This design uses survey questionnaires that are distributed to the respondents. Its main objective is to determine the relationship between the economic status and the choice of course of first year University of the Philippines Cebu students. This study also aims to identify the other factors which have possibly influenced their choice of course.
A focus group discussion is then conducted to support the initial data gathered by the questionnaire. The discussion is also used to gather more information from the respondents that are not revealed in their answers.
Data Collection
Each of the randomly selected respondents is given a questionnaire which they are tasked to fill up and to provide with accurate information.
The respondents are then divided into groups of five for the focus group discussion. The researchers decided that it is essential to conduct a focus group discussion limited to five people in order to create a more personal and comfortable atmosphere within the group. This has also prodded the respondents to provide more information than what they have initially provided in the questionnaire. The allotment for the collection of data will be for two weeks.
Having gathered all the necessary data, the researchers classified the responses according to the relationship of their economic status to their choice of course.
Instrumentation
In order to determine the relationship of the students’ economic status with their choice of course, questionnaires are distributed for the respondents to answer. The questionnaire is divided into three parts; personal information, financial background and choice of college course accordingly.
The first part of the questionnaire determines the personal information of the respondents which comprises name, age, sex and their course and year. The second part determines their financial background basing from their STFAP bracket assignment. The third part is in Likert Scale form, wherein the respondents indicated whether they strongly agree, agree, are undecided, disagree, or strongly disagree to the given statements. The statements given in the questionnaire are factors which are broken down to further emphasize the relationship between the students’ economic status and their choice of college course and to promote consistency as regards to the respondents’ answers.
Data Analysis
In order to determine the relationship between the economic status and the choice of course of first year University of the Philippines Cebu students, the answers in the questionnaires coupled with the focus group discussion are grouped accordingly.
The respondents’ STFAP bracket assignment and their answers in the Likert Scale on the questionnaires are duly compared and analyzed with the aid of The Statistical Package for the Social Science Software (SPSS).
The respondents’ answers in the focus group discussion are also classified under these factors: economic factor, others’ influence, prestige of the college, skills and abilities related and uncertainty.
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