Assume that you had estimated the following quadratic regression model:

Happiness_hat = 607.3 + 3.85 Income - 0.0423 Income2.

If Income increased from 10 to 11 (income is measured in thousands), then the predicted change in Happiness would be (round to two decimals):

Happiness_hat = 607.3 + 3.85 Income - 0.0423 Income2.

If Income increased from 10 to 11 (income is measured in thousands), then the predicted change in Happiness would be (round to two decimals):

2.96

Regression Methods and Time Series Analysis

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Question:
Assume that you had estimated the following quadratic regression model:Happiness_hat = 607.3 + 3.85 Income - 0.0423 Income2. If Income increased from 10 to 11 (income is measured in thousands), then the predicted change in Happiness would be (round to two decimals):

Answer:
2.96