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We ran linear regressions to see which factor was more statistically relevant between Cost of Living, Cost of Living with Rent Index, and Rent Index. We chose r
by brittany6229 8y ago
We ran linear regressions to see which factor was more statistically relevant between Cost of Living, Cost of Living with Rent Index, and Rent Index. We chose rent index from Numbeo based on those evaluations, which expresses the ratio of cost of rent in many metro areas. Since we are using San Francisco salary benchmarks, we divide by 1.26 to normalize the rent index to San Francisco. We multiply the Rent Index by 0.7 and then add 0.3, so the sum would equal 1 (i.e. we pay San Francisco rates in San Francisco).
- madcaptenor 8y agoSo where does the 0.7 and 0.3 come from?