In: Statistics and Probability
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:
The given model for in which quality of life as a dependent variable which depends on temp, income, social services and population (independent variable) is
As per the given condition that Temperature in North Dakota is 30 degrees and the temperature in Texas is 80 degrees (on average) assuming no other variables affect Quality of Life so we look the value of dependent variable taken all other variable zero except Temp for North Dakota and Texas seprately.
For North Dakota Temp= 30 degree
For Texas Temp= 80 degree
Because the quality of life in north dakota is 5.07 at the temp 30 degree while In Texas it is 4.57 at 80 degree since it can not be assume that Nort dakota is worse life condition .
Quality of life in North dakota is better than texas .