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A study on the classification of households in Rwanda based on factor scores
Journal of the Korean Data & Information Science Society 2018;29:547-55
Published online March 31, 2018
© 2018 Korean Data and Information Science Society.

Pacifique Nizeyimana1 · Kee-Won Lee2 · Songyong Sim3

123Department of Statistics, Hallym University
Correspondence to: Professor, Department of Statistics, Hallym University, Chuncheon 24252, Korea. E-mail:
Received February 17, 2018; Revised March 13, 2018; Accepted March 14, 2018.
This is an Open Access article distributed under the terms of the Creative Commons Attribution Non-Commercial License ( which permits unrestricted non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited.
Many researchers have focused on grouping or classifying households into different categories based on either income/consumption or household assets. However, these practices may lead to an inadequate classification due to Rwanda's unique family structure. In Rwanda, households are classified into six socio-economic classes known as `Ubudehe categories'. This classification is based on subjective perceptions of people. In this study, we propose to use household assets as well as income/consumption to classify Rwandan households into different socio-economic categories. These approaches are summated Likert scale method and factor score method. When these two methods are compared by a discriminant analysis, the factor score method brings out more reliable results than Likert method.
Keywords : Factor score, household assets, summated Likert scale, Ubudehe categories, wealth index.