A Sample of General Mills Employees Was Studied to Determine

question 45

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 b₂.

• A) For each additional$1,000 of annual income, their satisfaction index is expected to increase by 0.28 points.
• B) For each additional$1,000 of annual income, their satisfaction index is expected to increase by 2.8 points.
• C) For each additional$1,000 of annual income, their satisfaction index is expected to increase by 28 points.
• D) For each additional living child, their satisfaction index is expected to increase by 42 points.
• E) For each additional living child, their satisfaction index is expected to increase by 4.2 points.

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Definitions:

International Markets

Refers to the trade of goods, services, and capital across international borders or territories.

Age Or Income

Demographic factors used in marketing and research to segment and target audiences based on their age range or income level.

Market Segment

A subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs.

Attractive Opportunity

A business or investment prospect that is both appealing and likely to yield positive outcomes or profits.