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.
What is the estimated index of satisfaction for a person who first married at 25, has an annual income of $26,500, has two children, has assets of $156,000, has in index of health status of 141, and has 2.5 social activities per week?

Question

Quizplus · Accepted Answer

To calculate the estimated index of satisfaction, substitute the given values into the regression equation:Y' = 16.24 + (0.017 * 25) + (0.00028 * 26,500) + (42 * 2) + (0.0012 * 156,000) + (0.19 * 141) + (26.8 * 2.5)   = 16.24 + 0.425 + 7.42 + 84 + 187.2 + 26.79 + 67   = 389.055Rounded to one decimal place, the estimated index of satisfaction is 389.1.

A Sample of General Mills Employees Was Studied to Determine