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The purpose of this paper is to survey the public opinion of local population in Penghu about the possibility of opening up a special casino zone. A stratified sample of 590 effective samples covers 1 percent of local population with age over 20 which is conducted in March 1997 this year. The entire sample is sorted out according to different income levels,low, middle and high incomes; and in addition, two regions, including Makung city and other areas are also clustered. The research methodology includes factor analysis, discriminant analysis and logistic stepwise regression analysis. The best goodness of fit model derived from this study is logistic regression model with inclusion of all explanatory variables. Next, the major conclusions drawn from this study are the followings: 1. Being analyzed by income level, low income cluster by from factor analysis and logistic stepwise regression show that five key factors, including social cost, tourism economy, leisure entertainment, zoning regulation and timing restriction are factored out. In addition, middle income cluster from discriminant analysis with all explanatory variables included presents that seven variables such as leisure entertainment, basic human needs, social welfare, security force, underground economy, sex and age. Lastly, higher income level cluster from both factor analysis and discriminant analysis also show that five factors, including tourism economy, social cost, tourism island, income gap between the rich and the poor, and marriage, are important. 2. Being analyzed by the region, the empirical results from the factor analysis and logistic regression analysis for Makung city show that tourism economy, social cost, zoning regulation, and the quality of family life are the key factors; while the discriminant analysis with all explanatory variables included for non-Makung city area presents that basic human needs, leisure entertainment, social welfare, underground economy, social norm, tourist season extension, sex, and location designated are all important variables to be considered.
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