Question

The cases for the following equation are the states of the United States.

Quality of Life = 5.37 - .01Temp + .05Income +.003SocialServices - .01Population.

Let’s pretend that the Temperature in North Dakota is 30 degrees and the temperature in Texas is 80 degrees (on average). Now let’s assume that there aren’t any variables that were left out of the equation (i.e., no other variables affect Quality of Life). Is it safe to assume that the quality of life in North Dakota is half a point worse than the quality of life in Texas? Please explain why or why not.

Answer 1

Equation of Quality of Life for the states of the United States is as follows.

Quality of Life = 5.37 - .01Temp + .05Income +.003SocialServices - .01Population.

Assume that Temperature in North Dakota = 30 degrees

Temperature in Texas = 80 degrees (on average).

Assume that there aren’t any variables that were left out of the equation (i.e., no other variables affect Quality of Life).

Is it safe to assume that the quality of life in North Dakota is half a point worse than the quality of life in Texas? Please explain why or why not.

Using the model score of Qulaity of Life in North Dakota (30 Degrees) = 5.07

Using the model score of Qulaity of Life in Texas (80 Degrees) =4.57

In fact both these scores are close to each other. But to deny the quality of life at Texas just due to score = 4.57, is not appropriate. We need the Significance of the Model and Sginificance of Temperature as well.

Secondly, regression coefficient of Temperature < 0, itself mean that quality of life decreases with rise in Temerature but its significance is required for the concrete conclusion