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Mathematical Modelling and Analysis of Home Ownership Level in Malaysia
Nur Farhah Binti Ramli
Supervisor: Dr. Auni Aslah Bin Mat Daud
Bachelor of Science (Financial Mathematics)
School of Informatics and Applied Mathematics
Home ownership is a good property for investment because the value of house price will
increase every year. This study proposes a non-linear mathematical model that involves
three state variables namely the numbers of Malaysians who do not have any home, the
numbers of Malaysians who have one home and the numbers of Malaysians who have
two or more homes. A flow diagram which describes the population dynamics based on
home ownership is developed. Based on the flow diagram, a non-linear system
of ordinary differential equations was derived. In this study, the local stability analysis is
performed by using Jacobian matrix and Routh-Hurwitz criteria. By using MATLAB, the
stability analysis can be proven. The sensitivity analysis is conducted using the normalized
sensitivity index to determine the dominant model parameters which can be controlled to
address the issue of home ownership.
858 | UMT UNDERGRADUATE RESEARCH DAY 2018