Multiple Linear Regression Equation for Economic Dimension of Standard of Living

Abstract

The purpose of this analysis is to determine the signification of the following factors: population, population density and inflation rate to the measurement of the standard of living. The analysis takes into consideration demographic and economic data for a number of 10 EU member states. After calculating the standard of living in these countries, we analysed the impact of the mentioned factors using a multiple linear regression equation. We concluded that a part of the variation of the standard of living depends on the evolution of the three variables taken into consideration in the analysis.The standard of living of a population assesses the economic dimension of a country and the quality of life for a population.

Keywords

• living standard
• European Union
• inflation
• population density
• population
• multiple linear regression equation.