# Question: A consulting group was hired by the Human Resources Department

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:

yˆ = 16.24 + 0.017x1 + 0.0028 x2 + 42x3 + 0.0012x4 + 0.19x5 + 26.8x6

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?

b. Which would add more to satisfaction, an additional income of $10,000 a year or two more social activities a week?

Suppose the multiple regression equation is:

yˆ = 16.24 + 0.017x1 + 0.0028 x2 + 42x3 + 0.0012x4 + 0.19x5 + 26.8x6

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?

b. Which would add more to satisfaction, an additional income of $10,000 a year or two more social activities a week?

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