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 b₅. A) For each additional10 points on the health status index, their satisfaction index is expected to increase by 9 points. B) For each additional10 points on the health status index, their satisfaction index is expected to increase by 0.09 points. C) For each additional10 points on the health status index, their satisfaction index is expected to increase by 0.9 points. D) For each additional10 points on the health status index, their satisfaction index is expected to drop by 0.09 points. E) For each additional10 points on the health status index, their satisfaction index is expected to decrease by 9 points.

Question

Quizplus · Accepted Answer

The coefficient for the health status index (b₅) is 0.09, which means for each additional point on the health status index, the satisfaction index is expected to increase by 0.09 points. Therefore, for each additional 10 points, it would increase by 0.9 points.

A Sample of General Mills Employees Was Studied to Determine