In: Statistics and Probability
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.