QM 292 Exam #3 Happiness Spring 2021.docx NOTE: Scroll dow…
QM 292 Exam #3 Happiness Spring 2021.docx NOTE: Scroll down through the preview to see Model #1 and Model #2 Regression output. Annually, the United Nations (UN) surveys each of its 187+ member countries on the state of country happiness. As an analyst for the UN you are interested in looking at predicting country happiness. You collect data on 131 countries. Variable definitions are provided below. Dependent Variable – Happiness – takes on the value of 0-10 and is the average reported happiness measure for each country Independent Variables: Loggdp – is the (GDP/total population) and is a measure of country wealth and economic well-being Choice (Freedom to make life choices) – takes on the value from 0 to 1. The more freedom people perceive in making life decisions without government interference the closer the value is to 1. Socsup (Social Support)- takes on the value from 0-1 and is the national average of the binary responses (either 0 or 1) to the Gallup World Poll (GWP) question “If you were in trouble, do you have relatives or friends you can count on to help you whenever you need them, or not?” The closer the value is to ‘1 the greater the mean social support. Gener (Generosity) – takes on the value from 0-1 and is the national average of the binary responses to “Have you donated money to a charity in the past month?”. The closer the value is to ‘1’ the greater the mean country generosity. Lifeexp (life expectancy) – mean country life expectancy in years Corrup (corruption) – takes on the value from 0-1. The greater amount of perceived government corruption the closer the value is to 1. Eduind (education index)- is the mean percentage of individuals in a country that have completed a country’s minimum education requirement. For example, USA eduind = .87, meaning that 87% of USA have completed 12 years of education – the minimum education requirement in the US. In contrast, Germany eduind = .94, meaning that 94% of Germans have completed 10 years of education – the minimum education requirement in Germany. a. Considering the independent variables, statistical metrics, and that the analyst is interested in predicting happiness, which model, Model #1 or Model #2 is the best model and WHY? b. From the list of independent variables, which independent variable is LEAST likely to contribute to country happiness and WHY?