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In: Statistics and Probability

A random sample of 8 drivers insured with a company and having similar auto insurance policies...

A random sample of 8 drivers insured with a company and having similar auto insurance policies was selected. The following table lists their driving experiences (in years) and monthly auto insurance premiums:

Driving Experience (years)

Monthly Auto Insurance Premium

5

$64

2

$87

12

$50

9

$71

15

$44

6

$56

25

$42

16

$60

a. Make a scatter plot of the data

b. Calculate the correlation coefficient


c. Calculate a simple linear regression with Premium as the dependent variable and Experience as the independent variable


d. Is there a relationship between Driving Experience and Insurance Premium? Describe the relationship.

e. Predict the Monthly Auto Insurance Premium for a driver with 10 years of driving experience.

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