Question

In: Statistics and Probability

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

  1. 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.

Solutions

Expert Solution

Answer:-

Given That:-

  1. 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.

Given,

The given equation is,

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

Also given,

Temperature in North Dakota = 30 degree, and

Temperature in Texas = 80 degree

Now

If we assume that there aren't any variables that affect "Quality of life" except temperature.

Then equation for quality of life becoms,

Quality of life = 5.37 - 0.01 Temp

Hence, using given temperatures in North Dakota & Texas

We can predict quality of life at respective places.

Thus,

Quality of life (in North Dakota) = 5.37 - 0.01 (30)

= 5.37 - 0.30

= 5.07

i.e, Quality of life (in North Dakota) = 5.07

and

Quality of life (in Texas) = 5.37 - 0.01(80)

= 5.37 - 0.8

= 4.57

i.e, Quality of life (in Texas) = 4.57

Looking at the predicted quality of life in North Dakota & Texas one is not the double of other or half of other.

Thus,

It is NOT safe to assume that the quality of life in North Dakota is half point worse than the quality of life in Texas, Because quality of life in North Dakota is 5.07 and in Texas is 4.57 Which not half of 5.07

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