12.102 A special topic in the 2021 World Happiness Report is an attempt to quantify the effects of COVID-19. This is done by estimating a prediction model for the number of COVID-19 deaths in 2020 per 100,000 of the population. As predictors, three dummy variables are applied: being an island, having a female head of government, and being located in the Western Pacific Region. Additional quantitative predictors are median age of the population, international trust, and the GINI coefficient, which measures income inequality.

Using the 2021 data in the data file Happiness Report Data, we will build a multiple regression prediction model.

a. Prepare a correlation matrix for COVID-19 deaths and the predictor variables. Indicate any potential multicollinearity problems between the predictor variables.

b. Prepare a multiple regression analysis of COVID-

19 deaths on the potential predictor variables.

Remove any nonsignificant predictor variables, one at a time, from the regression model.

Indicate your best final model.

c. State the conclusions from your analysis, and discuss the conditional importance of the variables in terms of their relationship to the COVID-19 deaths.