A Research on What Determines the Hostel Rent (Baneshwor Area)

Chapter I

Introduction

1.1 Background of the study

Researches add value to us. Likewise, this study is done to relate the practical decision making on daily life on the basis of statistical information. When we walk from New-Baneshwor to Old-Baneshwor we see number of hostel serving either boy or girl. They are serving especially the student group. They take certain remuneration for the service. A desire arises within us, which variables actually affect the fee structure of hostel. Then we decided to make a small research on the hostel rent in our context.

1.2 Objective of the study

Main objectives of the following study are as follows:

To know variables that affect the hostel fee structure

To be practically familiar with statistical tool, SPSS

How different variables such as number of person in a room, furnished room, floor of the room, etc affect the rent of hostel

1.3 Limitations of the study

Information is collected from hostel between Old- Baneshwor and New- Baneshwor.

Few variables are made into consideration.

So the conclusion drawn from this research finding cannot be equally generalized in other settings.

1.4 Research Methodology

Research methodology is primarily empirical type. The data are collected primarily from hostel between Old- Baneshwor and New- Baneshwor. In this report, we use Descriptive and Analytical research design. 

A simple questionnaire was used to collect information. We individually visited six hostels.  Information is collected from respective owner of hostel. There are total 287 boys or girls living in these hostels.

 

Chapter II

Data Analysis

2.1 Tools for Analysis

• Regression:

It is a statistical measure that attempts to determine the strength of the relationship between one dependent variable (usually denoted by Y) and a series of other changing variables (known as independent variables). 

The two basic types of regression are linear regression and multiple regressions. Linear regression uses one independent variable to explain and/or predict the outcome of Y, while multiple regressions use two or more independent variables to predict the outcome.

• Multi Collinearity:

Multi co linearity is a statistical phenomenon in which two or more predictor variables in a multiple regression model are highly correlated. In this situation the coefficient estimates may change erratically in response to small changes in the model or the data. 

A high degree of multi co linearity can also cause computer software packages to be unable to perform the matrix inversion that is required for computing the regression coefficients, or it may make the results of that inversion inaccurate. The degree of multicollinearity is determined by a test called VIF. If VIF<10, there exists no multicollinearity, and if VIF>10, there exists multicollinearity.

• ANOVA:

In statistics, analysis of variance (ANOVA) is a collection of statistical models, and their associated procedures, in which the observed variance in a particular variable is partitioned into components attributable to different sources of variation. In its simplest form ANOVA provides a statistical test of whether or not the means of several groups are all equal, and therefore generalizes t-test to more than two groups. Doing multiple two-sample t-tests would result in an increased chance of committing a type I error. For this reason, ANOVAs are useful in comparing two, three or more means.

• Autocorrelation:

Autocorrelation is a statistical tool which is used to find the effect of seasonal data in the statistics. In many of the cases, the seasonal data may affect the calculation and interpretation of the data. The effect is calculated by Durban Waston test, simply known as D-W test. The variables could have either auto correlation, no auto correlation of inconclusive. Factors like dL and dU are used to determine the value of D-W test.

2.2 Analysis and Findings

After entering the data in the SPSS model, we came to analyze the following findings with the above mentioned tools.

• Correlation: 

Correlation coefficient(r) =0.670

 which implies that there is positive correlation between dependent variable (Hostel rent) and independent variables (no. of persons in a room, floor, sex, furnished).

Coefficient of Determination:

R^2=0.449 

Which implies 44.9% of the variation in hostel rent is explained by this regression equation. 

Standard Error of Estimate:

Standard error of estimate 

Syx=793.68

Which means the variability of observed value of hostel rent from the regression line is Rs 793.68. 

• Regression:

The regression equation that explains the relationship between dependent variable(Y) and dependent variables(X1, X2 and X3) is given by:

Y=7392.456-208.201X1-584.565X2+136.518X3

Where Y¬¬-hostel rent

X1-No of floor

X2-No of persons in a room

X3-Gender (i.e. 0=Female; 1=Male)

Bo=7392.46 

This implies other factors rather than independent variables (mentioned above) th

at determine hostel rent.

B1=-208.201

This implies increase in floor by one unit leads to decrease in price of hostel rent by Rs. 208.20 keeping other variables constant.

B2= -584.565

This implies that increase in no. of persons in a room by one unit leads to decrease in price of hostel rent by Rs. 584.57 keeping other factors constant.

B3= 136.518 

 This implies that the hostel rent for male is greater than that of female by Rs. 136.52 keeping other factors constant.

Test of Regression Coefficient (Slope):

Floor

H0: B1=0 i.e. there is no linear relationship between hostel rent and level of floor.

H1: B1≠0 i.e. There is significant relationship between hostel rent and the level of floor. 

P-value = 0.417

Decision:

At 0.05 level of significance, there exists no relationship between hostel rent and level of floor.

Number of persons in a single room

H0: B2=0 i.e. there is no linear relationship between hostel rent and no. of persons in a room

H1: B2≠0 i.e. there is linear relationship between hostel rent and no. of persons in a room

P-value = 0.004

Decision:

At 0.05 level of significance, there exists relationship between hostel rent and no. of persons in a room

Gender

H0: B3=0 i.e. there is no linear relationship between hostel rent and gender

H1: B3≠0 i.e. there is linear relationship between hostel rent and gender

P-value = 0.775

Decision:

At 0.05 level of significance, there exists no relationship between hostel rent and gender.

Test of Significance as a whole

H0: B1=B2=B3=0 i.e. Regression is not significant as a whole 

H1: At least one Bi≠0 i.e. Regression is significant as a whole 

P-value = 0.020

Decision:

At 0.05 level of significance, the regression is significant as a whole. 

Test of multicollinearity

Since all VIFs are less than 10, there exists no multicollinearity between independent variables. 

Test of autocorrelation 

We can’t test autocorrelation because it is cross sectional data.

Chapter: 3

Conclusion

From the above calculation and we obtained the linear relationship between Hoste Rent and Number of persons in a single room. At 0.05 level of significance, regression is significant as a whole. Likewise there exists no multicollinearity between independent variables. 

Since coefficient of determination (R-square) is 0.449, there seems lack of other independent variables. 

Thank You!

Street Vending and Reulatory Practices in Kathmandu, Nepal

Introduction

It can be defined as any minimal processed foods sold on the street for immediate consumption (Tinker, 2003).  Food safety has been becoming a major challenge in Nepal. Foods adulteration has grown due to weak market regulatory mechanism (Himalayan News Services, 2010). The year of 2011 came with shocking news about the adulteration in daily food items. Foods on the streets are not healthy as street vendors are not maintaining hygiene standard (Himalayan News Services, 2011).

Background of Study

Concern about foods safety has been growing with the rapid boom of media in Nepal. Nepalese fast foods market has been booming but proper regulation, supervision and awareness are lacking. With an attempt to contribute for regulatory body, street vendors, and consumer, I have chosen the topic “Street Foods Management in Kathmandu”, specially focusing on areas like Ratna Park, Old Bus Park, Sundhara, and Chabahil. Major focus of this study is to promote food hygiene, supervision/ regulation and consumer awareness.

Purpose/Objective

Street vendors are informal sectors. There is no systematic documentation of the number of street food vendors in Nepal. This research has been done with an attempt to identify the current regulatory issue, vendor’s practices, and consumer awareness about food hygiene, quality and safety. Major objectives of research work are as follows:

—  To identity the present regulatory practices of street foods in Kathmandu valley.

—  To promote awareness to street vendors about food hygiene, safety and quality

—  To analyze the consumer’s thought about street vending.

—  To get familiar with research work.

Statement of Problem

Researcher has formulated following hypotheses before doing research work:

·         Street food vendors are not well educated so they are unaware about food safety and quality.

·         DFTQC and Metropolitian City Office have not performing proper supervision and awareness programs.

·          Consumers are aware about foods hygiene and quality however, they consume due to cheaper price.

The finding shows that all above stated hypotheses are valid. Vendors are not aware about foods safety and quality issue. Likewise, regulatory bodies have not supervised street foods due to lack of adequate resources. Research shows that consumers are compelled to consume for unhygienic foods due to easier accessibility and cheaper price.

Methdology

This research work has been done based on article review, questionnaire, and personal interview with officers of supervisory body of government, Department for Foods Technology and Quality Control (DFTQC), and Metropolitan City Office.

Limitations

Every research work has its own weakness. I want to mention the weaknesses of this research work as follows:

·         Report doesn’t include and study invisible street foods which were prepared in office building and didn’t go through streets.

·         Research was done by taking limited 32 samples for questionnaire survey.

·         This report was prepared under time constraint.

·         Street foods include foods that are minimal processed and consumed directly.

Street Foods Overview

Street foods are universal phenomenon from the earliest times and today, street foods provide an essential source of inexpensive ready-to-eat foods for workers of every class and occupation (Tinker, 2003). Street food is ready-to-eat food or drink sold in a street or other public place, such as a market or fair, by a hawker or vendor, often from a portable stall (Wikipedia).It includes many types of foods ranging from cereal and fruits to cooked meats and drinks (streetfoods.org). It is usually sold in busy public areas, such as pavements roadways, back alleys of markets, school premises, bus and railway stations, beaches, parks and other public spaces (streetfoods.org)

Urban population growth has stimulated a rise in the number of street food vendors in many cities throughout the world. Migration from rural areas to urban cities has created a daily need among many working people to eat outside the home. Demand for relatively inexpensive, ready-to-eat food has increased as people, especially women, have less time to prepare meals (Winarno and Allain). Street food vendors may be located outdoors or under a roof which is easily accessible from the street (Winarno and Allain).

Definition

Defining street foods is a difficult job. It can be defined as any minimal processed foods sold on the street for immediate consumption (Tinker, 2003). Vendors of street foods are mobile or stationery. Under this report, street foods do not include invisible street foods which are prepared in office buildings and do not go through streets (Tinker, 2003). “Street vending refers to a person who offers goods for sale to the public without having permanent built-up structure from which to sell” (Bhowmik, 2005).

Street vendors refer to the stationary as well as mobile vendors: stationery in a sense that they occupy space on the pavements or other public/private spaces or they may be mobile in a sense that they move from place to place by carrying their wares on push carts or in basket on their heads (Bhowmik, 2005). 

Hence, we can conclude that street foods are those foods that are offered by street vendors on the pavement or other private and public spaces. Street food businesses are mobile in nature. Moreover, street vendors are providing cheap foods to middle and low income groups.

Street Foods in Kathmandu

In context of Nepal, the market for street foods has been booming. Street foods are informal sectors. Generally, the number of street vendors increases with modernization as traditions of eating at home break down (Tinker, 2003). Vendors are either mobile or stationery.  People of middle and low income groups are benefited by affording cheap foods. One major reason for the attraction of street vending is easier entry which doesn’t require high skills and doesn’t involve huge capital (Bhowmik, 2005). 

Problems of Street Foods  

Research shows that major problem of street food is absence of clean water to wash dishes and utensils. There is no systematic documentation of the number of street food vendors in Nepal. Street vendors need to be supervised to improve the safety and nutritional value of street foods. Likewise, carts were designed with display cases shielded from dust and inspects. Study has shown that cooking in the open (in front of consumers) ensure that food are fresh and unadulterated (Bhowmik, 2005) however for this specific area should be allocated. Street vending creates pollution and uses public road space if not properly managed. Street vendors are reluctant to upgrade their equipment today if they expect it to be wrecked tomorrow (Burt, Volel and Finkel 2003, p. 337).

Street Foods Management

It is impossible to suppress the street food trade because of its importance and scope. However, an organizational body is needed to regulate street foods. Instead of frequent confrontations between vendors and police, vendors, who registered their stall locations, must be allowed to continue selling following basic health and cleanliness standards (Tinker, 2003, p. 338). Moreover, 96.88 % of questionnaire respondents say that street vendors need to be supervised by government body. For foods supervision/ regulation, Department of Foods Technology and Quality Control, government organization to ensure safety and quality of food supply in the market, (DFTQC), Kathmandu Metropolitan City Office, Consumer Right Nepal, and other NGOs/INGOS have been working. 

Kathmandu Metropolitan City Office: Attempt for Street Foods Management 

KMCO has full right to punish for street vendors who are getting involvement in foods adulteration and fraudulent activities. It supervises market to control unfair business practices. It’s supervision team includes food inspectors, representative of Chief District Officer, veterinarian, representatives of Consumer Right, and other people.
KMCO has been planning to implement a compulsory licensing policy to all street vendors assigning identification numbers, maintaining street cart uniformity, and orientation program for foods safety and hygiene. KMCO will allocate specific areas i.e. Khulamanch, Balaju, Chabahil, Kalanki for street vendors and it will ensure availability of water, toilet, and dirt management. Likewise, KMCO has planned to conduct various awareness programs for vendors and consumers. According to KMCO, vendors of street foods are needed to be health certified. KMCO will give a standard for foods processing, packaging, storage, and arrangement of foods. KMCO works under Local Governance Act 2056BS. It has its own lab test for foods adulteration, currently not operating. KMCO’s research shows that venders are interested to invest for management of carts and registration. Despite proper plan, KMCO has not yet implemented its street foods management program due to lack of budget, lack of technical man power, and transition period of economy.

'Department of Food Technology and Quality Control:Street Foods Regulation Effort 

DFTQC is a government organization to ensure safety and quality of food supply in the market. It supervises foods market regularly and conducts awareness programs for producer as well as consumers. Local Governance Act 2056 BS has given responsibility to local bodies for supervision of street foods. DFTQC assists for KMCO’s effort to regulate foods market. It has legal authority for the punishment of vendors not ensuring safety. It also works with collaboration of WHO, and other NGOs/INGOs.  It has its own laboratory test for hygiene, quality and foods safety.

Analysis and Finding

• Survey Result of persons who consume street foods. survey result shows that 77% of respondents consume street foods

• Survey result of issue does external surrounding of food stall matter before consumption of foods from there.74% of the respondents say that they consider external surrounding before consuming foods from foods stall.

• Survey result showing street vendors’ awareness of hygiene, quality and safety of foods: According to respondent’s answer, 77% says that foods vendors are unaware about safety, hygiene, and quality

•    Survey result showing necessity to supervise street vendors: Survey result shows that it is necessary to supervise street vendors.

•  Survey concerned with  government effort to ensure safety and quality of foods supply in the market:  75 % of respondents say that there is no government effort to supervise for street foods.
•  Survey response on awareness programs and media release conducted by DFTQC about the contamination of harmful micro organisms and metal found in street foods: Only 49 % of respondents say that they are aware about the media release about the contamination of harmful micro organisms and metal found in street foods.

Limitation of Foods Regulatory Authority

This research has clearly identified that there is no proper regulation of street food in Kathmandu valley. Department of Food Technology and Quality Control, government organization to ensure safety and quality of foods supply in the market, (DFTQC) has been conducting inspection and awareness programs but are not sufficient. Senior foods research officer Mr. Mohan Krishna Maharjan says that they are unable to supervise market in proper manner due to following reasons:

·         Lack of technical human resources

·         Lack of vehicle for inspection

·         Lack of inspectors: only 7-8  inspectors are there to supervise Kathmandu

·         Security threat for inspectors

·         Lack of adequate budget for consumer awareness, industry supervision and inspection

Kathmandu Metropolitan City Office, though it has prepared plan for managing street foods, has not yet launched effective rules and regulations and awareness program to manage street foods due to transition period of country.

Conclusion and Recommendation

Street foods have been proving as essential source of inexpensive, ready-to-eat food for workers of every class and occupation. Due to easier to entry, not requirement of high skills and low capital involvement, interest of investors for vending foods on street has been growing. Instead of frequent altercation between vendors and police, it is necessary to prepare registration provision and municipality must ensure standardization of carts in which foods are prepared and sold from there. Likewise, consumer and producer awareness programs in terms of foods hygiene, sanitation, packaging, and preservation are necessary. Assigning specific location for vending foods on street would be better to supervise for Kathmandu Metropolitan City Office and manage and it would be easier to manage for toilet, water and dirt. Metropolitan City Office must ensure foods safety inspection.

Interventions are necessary in fast foods/ street foods to guarantee the safety of the foods they sold.

 References

Tinker, I. (2003). Street Foods: Traditional Macroenterprise in a Modernizing World. Toward  

General Equity: Policies and Strategies(Vol. 16, pp. 331-349). McKesson Health Solutions.

Bhowmik, S.K. (2005). Street Vendors in Asia: A review. (Vol. 40, pp. 2256-2264).

              Economic and Political Weekly

Vollaard, A. M., Ali, S., Van Asten, H. A. G. H., Ismid, I. S and Dissel, J.T. (2004). Risk Factors for

Transmission of Foodborne Illness in Restaurants and Street Vendors in Jakarta. Epidemiology and Infection (Vol 132, pp. 863-872)

Bhowmik, S.K.( 2005). Street Vendors in Asia. Economic and Political Issue (Vol 40,

              pp.2256-2264)

Winarno, F.G and Allain, A. Street Foods in Developing Countries. Lessons from Asia.

             http://www.fao.org/docrep/u3550t/u3550t08

Street Foods Unhygenic (2010). Himalan News Services.\  http://srv.thehimalayantimes.com/fullNews.php?headline=Street+food+unhygenic%3A+Dept&NewsID=289835