The OECD Better Life Initiative focuses on measuring statistics that can capture aspects of life that matter most to people and that help to shape the quality of their lives. In this exercise, using the data file OECD Satisfaction, we investigate LifeSatisfaction as our response variable and four potential predictor variables: AirPollution, WaterQuality, LifeExpectancy, and Self-reportedHealth.

a. Develop regression models to predict LifeSatisfaction using the four predictor variables one by one in the four models. Analyze the regression statistics and indicate which equation provides the best predictions.

b. Determine the 95% confidence interval for the slope coefficient in the four regression equations.

c. Based on each model, predict the effect of an increase of (approximately) 10% in the predictor variable.

d. Using all four models, compute for Mexico the 95%

confidence intervals for the change in LifeSatisfaction that results from a 10% increase in each of the four predictor variables.