The purpose of this pilot study is to identify the questionnaire items that should be used in the actual study, regarding insurance expenditures among households with the lowest income group (B40). This study used 30 respondents in answering this questionnaire set. Two statistical tests were done under this study, namely, validity and reliability tests. The validity test was conducted to measure the validity of a questionnaire items using Confirmatory Factor Analysis (CFA). On the other hand, the reliability test was performed to assess the reliability of a coefficient or variable in the questionnaire using Cronbach’s Alpha Analysis. Data analysis process was done to obtain Cronbach Alpha value and correlation index between items and overall score. Items with an alpha value of less than 0.65 would be removed from the study tool, due to their low reliability. The result of the test found that the KMO test and Bartlett's test were greater than 0.5. Consequently, the data suggested no serious multicollinearity problem. Therefore, it was deemed appropriate to undergo factor analysis after dropping some items. Additionally, the assessment revealed that all variables had favorable Alpha Coefficient value of more than 0.7. Overall, based on the analyses, 40 items were retained while 20 items were abolished to improve KMO values. In conclusion, this instrument, with some improvements, can surely be used for future field studies.
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In-Text Citation: (Ramli et al., 2018)
To Cite this Article: Ramli, N. B. R., Hashim, E. B., Mahdinezhad, M., Jalil, N. B. A., Hashim, A., & Bakri, S. B. M. (2018). Issues in Insurance Expenses among the Lowest Income Households in Malaysia: Validity and Reliability Analyses. International Journal of Academic Research in Business and Social Sciences, 8(10), 1372–1380.
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