Chapter 14, Problem 3E

A consulting group was hired by the Human Resources Department at General Mills, Inc. to survey company employees regarding their degree of satisfaction with their quality of life. A special index, called the index of satisfaction, was used to measure satisfaction. Six factors were studied, namely, 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—such as bowling and dancing (x₆). Suppose the multiple regression equation is:

$\hat{y}=16.24+0.017x_1+0.0028x_2+42x_3+0.0012x_4+0.19x_5+26.8x_6$

1. a. What is the estimated index of satisfaction for a person who first married at 18, has an annual income of $26,500, has three children living, has assets of $156,000, has an index of health status of 141, and has 2.5 social activities a week on the average?
2. b. Which would add more to satisfaction, an additional income of $10,000 a year or two more social activities a week?