To determine the insurance premium of a car, an insurancecompany considers the following determinants: the...

To determine the insurance premium of a car, an insurance company considers the following determinants: the model of the car , the age of the car, and the mileage of the car. Which of the following is the dependent variable? Please explain why you chose this answer to better understand why you chose it. I believe it is A due to using the cars mileage and always determines the premium of the bill. But then i believe it is C.insurance premium due to the age, model, and mileage of the car that depend on it.

A.) Mileage

B.) Age

c.) Insurance premium

D.) Model

Solutions

Expert Solution

To determine the insurance premium of a car,

So dependent variable is insurance premium of a car

indepeendent variables are

model of the car , the age of the car, and the mileage of the car

our model will be

insurance premium =a+b*model of the car+b1* age of the car+b2* mileage of the car

we need to determine slopes and y intercept from regression equation.
Coming to answer:

Which of the following is the dependent variable

c.) Insurance premium

orchestra answered 1 year ago

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