Question

In: Statistics and Probability

Waterbury Insurance Company wants to study the relationshipbetween the amount of fire damage and the...

Waterbury Insurance Company wants to study the relationship between the amount of fire damage and the distance between the burning house and the nearest fire station. This information will be used in setting rates for insurance coverage. For a sample of 30 claims for the last year, the director of the actuarial department determined the distance from the fire station (x) and the amount of fire damage, in thousands of dollars (y). The MegaStat output is reported below.

ANOVA table
SourceSSdfMSF
Regression1,864.578211,864.5782
38.83
Residual1,344.49342848.0176

Total3,209.071629



Regression output
VariablesCoefficientsStd. Errort(df=28)
Intercept12.36013.29153.755
Distance–X4.79560.76966.231

  Click here for the Excel Data File

  1. a-1. Write out the regression equation.(Round your answers to 3 decimal places.)

  1. a-2. Is there a direct or indirect relationship between the distance from the fire station and the amount of fire damage?

  1. How much damage would you estimate for a fire 5 miles from the nearest fire station? (Round your answer to the nearest dollar amount.)

  1. c-1. Determine and interpret the coefficient of determination. (Round your answer to 3 decimal places.)

  1. c-2. Fill in the blank below. (Round your answer to one decimal place.)

  1. d-1. Determine the correlation coefficient.(Round your answer to 3 decimal places.)

  1. d-2. Choose the right option.

  1. d-3. How did you determine the sign of the correlation coefficient?

  1. e-1. State the decision rule for 0.01 significance level: H0 : ρ = 0;H1 : ρ ≠ 0. (Negative value should be indicated by a minus sign. Round your answers to 3 decimal places.)

  1. e-2. Compute the value of the test statistic.(Round your answer to 2 decimal places.)

  1. e-3. Is there any significant relationship between the distance from the fire station and the amount of damage? Use the 0.01 significance level.

Solutions

Expert Solution


Related Solutions

Waterbury Insurance Company wants to study the relationship between the amount of fire damage and the...
Waterbury Insurance Company wants to study the relationship between the amount of fire damage and the distance between the burning house and the nearest fire station. This information will be used in setting rates for insurance coverage. For a sample of 30 claims for the last year, the director of the actuarial department determined the distance from the fire station (x) and the amount of fire damage, in thousands of dollars (y). The MegaStat output is reported below. ANOVA table...
Waterbury Insurance Company wants to study the relationship between the amount of fire damage and the...
Waterbury Insurance Company wants to study the relationship between the amount of fire damage and the distance between the burning house and the nearest fire station. This information will be used in setting rates for insurance coverage. For a sample of 30 claims for the last year, the director of the actuarial department determined the distance from the fire station (x) and the amount of fire damage, in thousands of dollars (y). The MegaStat output is reported below. ANOVA table...
Waterbury Insurance Company wants to study the relationship between the amount of fire damage and the...
Waterbury Insurance Company wants to study the relationship between the amount of fire damage and the distance between the burning house and the nearest fire station. This information will be used in setting rates for insurance coverage. For a sample of 30 claims for the last year, the director of the actuarial department determined the distance from the fire station (x) and the amount of fire damage, in thousands of dollars (y). The MegaStat output is reported below. ANOVA table...
Waterbury Insurance Company wants to study the relationship between the amount of fire damage and the...
Waterbury Insurance Company wants to study the relationship between the amount of fire damage and the distance between the burning house and the nearest fire station. This information will be used in setting rates for insurance coverage. For a sample of 30 claims for the last year, the director of the actuarial department determined the distance from the fire station (X) and the amount of fire damage, in thousands of dollars (Y). The MegaStat output is reported below.   ANOVA table...
Waterbury Insurance Company wants to study the relationship between the amount of fire damage and the...
Waterbury Insurance Company wants to study the relationship between the amount of fire damage and the distance between the burning house and the nearest fire station. This information will be used in setting rates for insurance coverage. For a sample of 30 claims for the last year, the director of the actuarial department determined the distance from the fire station (x) and the amount of fire damage, in thousands of dollars (y). The MegaStat output is reported below. ANOVA table...
Waterbury Insurance Company wants to study the relationship between the amount of fire damage and the...
Waterbury Insurance Company wants to study the relationship between the amount of fire damage and the distance between the burning house and the nearest fire station. This information will be used in setting rates for insurance coverage. For a sample of 30 claims for the last year, the director of the actuarial department determined the distance from the fire station (x) and the amount of fire damage, in thousands of dollars (y). The MegaStat output is reported below. ANOVA table...
Waterbury Insurance Company wants to study the relationship between the amount of fire damage and the...
Waterbury Insurance Company wants to study the relationship between the amount of fire damage and the distance between the burning house and the nearest fire station. This information will be used in setting rates for insurance coverage. For a sample of 30 claims for the last year, the director of the actuarial department determined the distance from the fire station (x) and the amount of fire damage, in thousands of dollars (y). The MegaStat output is reported below ANOVA table...
Waterbury Insurance Company wants to study the relationship between the amount of fire damage and the...
Waterbury Insurance Company wants to study the relationship between the amount of fire damage and the distance between the burning house and the nearest fire station. This information will be used in setting rates for insurance coverage. For a sample of 30 claims for the last year, the director of the actuarial department determined the distance from the fire station (x) and the amount of fire damage, in thousands of dollars (y). The MegaStat output is reported below. ANOVA table...
Suppose that a fire insurance company wants to relate the amount of fire damage in major...
Suppose that a fire insurance company wants to relate the amount of fire damage in major residential fires to the distance between the burning house and the nearest fire station. The study is to be conducted in a large suburb of a major city. A sample of 14 recent fires in this suburb is selected. The amount of damage, y, and the distance between the fire and the nearest station, x, are given below. We are interested in building a...
A fire insurance company wants to estimate the amount of fire damage in major residential fires...
A fire insurance company wants to estimate the amount of fire damage in major residential fires based on distance between the residence and the nearest fire station. The study is to be conducted in a large suburb of a major city, a sample of 16 recent fires in this suburb is selected. –Explanatory Variable (x): Distance –Response Variable (y): Damage Give a 95% Confidence Interval for slope. (  ,  )
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT