What is the estimated index of satisfaction for a person who first married at 25, has an annual income of $100,000, has two children, has assets of $500,000, has in index of health status of 141, and has 3 social activities per week?
A sample of General Mills employees was studied to determine their degree of satisfaction with their present life. A special index, called the index of satisfaction, was used to measure satisfaction. Six factors were studied: age at the time of first marriage (X1), annual income (X2), number of children living (X3), value of all assets (X4), status of health in the form of an index (X5), and the average number of social activities per week (X6). Suppose the multiple regression equation is:
Y' = 16.24 + 0.017X1 +0.00028X2 + 42X3 + 0.0012X4 + 0.19X5 + 26.8X6
A) 777.7
B) 796.6
C) 588.6
D) 601.6
E) 769.8

Question

Quizplus · Accepted Answer

By substituting the given values into the regression equation, we calculate: Y' = 16.24 + (0.017*25) + (0.00028*100000) + (42*2) + (0.0012*500000) + (0.19*141) + (26.8*3) = 796.6.

What Is the Estimated Index of Satisfaction for a Person