What Is the Estimated Index of Satisfaction for a Person

question 3

Multiple Choice

What is the estimated index of satisfaction for a person who first married at 25, has an annual income of $60,000, has two children, has assets of $350,000, has in index of health status of 141, and has 2 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) 777.7
• B) 796.6
• C) 588.6
• D) 601.6
• E) 769.8

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Definitions:

Microeconomist

An economist who specializes in microeconomics, the study of the behavior of individuals and firms in making decisions on the allocation of limited resources.

Inflation Rate

The speed at which the generic pricing for goods and services elevates, undercutting the force of buying potential.

Macroeconomics

A branch of economics that studies how an economy as a whole functions, including total national income, total levels of employment, and how general price levels are determined.

Economy-Wide Phenomena

Broad trends or occurrences that affect the overall economic system, including inflation, unemployment, and national income.