Multiple Choice
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 + 0.09X5 + 26.8X6.
Explain the meaning of b4.
A) For each additional living child, their satisfaction index is expected to increase by 42 points.
B) For each additional $1,000 of annual income, their satisfaction index is expected to increase by 0.028 points.
C) For each additional $10,000 in assets, their satisfaction index is expected to increase by 0.12 points.
D) For each additional $10,000 in assets, their satisfaction index is expected to increase by 1.2 points.
E) For each additional $10,000 in assets, their satisfaction index is expected to increase by 12 points.
Correct Answer:

Verified
Correct Answer:
Verified
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