A psychologist studying perceived "quality of life" in a large number of cities (N=150) came up...

A psychologist studying perceived "quality of life" in a large number of cities (N=150) came up with the following equation using temperature (Temp), median income in $1000 (Income), per capita expenditure on social services (SocSer) and population density (Popul) as predictors.

Y-hat = 5.37 2 0.01 Temp + 0.05 Income + 0.003 SocSer - 0.01 Popul

Interpret only the intercept and slopes for Temp and Income. Make sure to interpret them using their units of measurement.

Expert Solution

We know that:

Quality_of_life = 5.37 + 0.01Temp + 0.05Income + 0.003SocSec - 0.01Popul

This is a regression equation.

Intercept: The value of the intercept is 5.37. This means that if all the other variables (temperature, income, social security and population) are 0, the quality of life index would be 5.37 units.

Temperature (Temp): The value of temp is 0.01. This value tells us that if the other variables are kept constant, every one unit change in the temperature will affect the quality of life index by 0.01 units. If the temperature increase by 1 unit, the index will increase by 0.01 units, and vice versa.

Income: The value of income is 0.05. This value tells us that if the other variables are kept constant, every 1000 dollar change in the income will affect the quality of life index by 0.05 units. If the income increase by 1000 dollars, the index will increase by 0.05 units, and vice versa.

orchestra answered 2 years ago

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