Question

What socio-economic variables could serve as Independent variables when conducting a multiple linear Regression with the dependent variable "Happiness Index"? (I already have GDP/capita, divorce rate, unemployment rate, urbanization rate) Maybe you also can come up with an "interesting" one where there is not yet so much Research on a potential correlation with Happiness. Thanks in advance

Answer 1

Expense is another appropriate socio-economic variable that can be served as an independent variable when conducting a multiple regression with the dependent variable "Happiness Index".

Since your all independent variables are numerical or non-categorical, that's why expense as an independent variable will be useful in the multiple regression. Expense is also a numerical variable, so you will not face any issue of including categorical variable in the non-categorical regression analysis.

We can also include occupation, but that will be categorical variables. So, expense is most preferred socio-economic variable to be included as an independent variable when conducting a multiple regression with the dependent variable "Happiness Index".

You can relate higher expense and lower expense with corresponding happiness index.