What Is the Estimated Index of Satisfaction for a Person

question 34

Multiple Choice

What is the estimated index of satisfaction for a person who first married at 25, has an annual income of $46,000, has two children, has assets of $200,000, has in index of health status of 141, and has 2.5 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) 368.3
• B) 421.6
• C) 366.0
• D) 601.6
• E) 769.8

---

Definitions:

Owner's Equity

Owner's equity represents the residual interest in the assets of an entity after deducting liabilities, essentially the net worth of a company.

Withdrawal

The act of taking money out of an account, or the removal of funds from a partnership by a partner for personal use.

Revenues

The full extent of revenue garnered from the commercial activities that are at the core of a company’s operational agenda, particularly through goods or services.

Assets

Resources owned by a company that have economic value and can be used to meet its future obligations.