Question

A sociologist wishes to study the relationship between happiness and age. He interviews 24 individuals and collects data on age and happiness, measured on a scale from 0 to 100. He estimates the following model: Happiness = β₀ + β₁Age + ε. The following table summarizes a portion of the regression results.

	Coefficients	Standard Error	t-stat	p-value
Intercept	56.1779	5.2135	10.7755	0.0000
Age	0.2857	0.0914	3.1258	0.003

The estimate of Happiness for a person who is 55 years old is the closest to ______

a 72

b 59

c 75

d 65

Answer 1

A sociologist wishes to study the relationship between happiness and age.

He interviews 24 individuals, and collects data on age and happiness, measured on a scale from 0 to 100.

From the summary statistic table, we can say that the regression equation is

Where, x is the age and y is the predicted happiness index.

Now, some person has age 55.

So, x = 55.

So, this happiness index is closest to 72.

So, the correct answer is option (a) 72.