Question
In: Statistics and Probability
1. A random sample of eight auto drivers insured with a company and having similar auto...
1. A random sample of eight auto drivers insured with a company and having similar auto insurance policies was selected. The following table lists their driving experience (in years) and the monthly auto insurance premium (in dollars).
|
Driving Experience |
|
5 |
|
2 |
|
12 |
|
9 |
|
15 |
|
6 |
|
25 |
|
16 |
|
Monthly Auto Insurance Premium ($) |
|
64 |
|
87 |
|
50 |
|
71 |
|
44 |
|
56 |
|
42 |
|
60 |
a) Find the regression of Monthly Auto Insurance Premium on Driving Experience and write down the least squares regression model.
b) Give a brief interpretation of the value of the slope calculated in part a.
c) Is the slope significant? Explain.
d) Predict the Monthly Auto Insurance Premium for a driver with 10 years of driving experience.
e) Calculate the correlation coefficient and interpret its meaning.
f) Is the linear correlation coefficient between both variables significant? Explain.
g) Calculate the coefficient of determination and explain its meaning.
h) Draw a scatter diagram of the two variables and show the regression model obtained in part a.
Solutions
orchestra answered 2 years agoRelated Solutions
A random sample of eight auto drivers insured with a company and having similar auto insurance...
A random sample of eight auto drivers insured with a
company and having similar auto insurance policies
was selected. The following table lists their driving experience
(in years) and the monthly auto insurance
premium (in dollars).
Driving Experience(years) 5 2 12 9 15 6 25 16
Monthly Premium(dollars) 64 87 50 71 44 56 42 60
Answer the following questions.
Predict the average monthly auto insurance premium for drivers with
10 years of driving experience and
provide the 95% confidence...
A random sample of eight auto drivers insured with a company and having similar auto insurance...
A random sample of eight auto drivers insured with a
company and having similar auto insurance policies
was selected. The following table lists their driving experience
(in years) and the monthly auto insurance
premium (in dollars).
Driving Experience(years) 5 2 12 9 15 6 25 16
Monthly Premium(dollars) 64 87 50 71 44 56 42 60
Answer the following questions.
(a) Does the insurance premium depend on driving experience or does
the driving experience depend on
insurance premium? Do you...
A random sample of eight drivers insured with a company and having similar auto insurance policies...
A random sample of eight 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. Does the insurance premium depend on the driving experience
or does the driving experience depend on the insurance premium? Do
you expect a...
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...
1. A random sample of 10 drivers reported the below-average mileage in the city for their...
1. A random sample of 10 drivers reported the below-average
mileage in the city for their cars. 18, 21, 24, 25, 25, 25, 25, 26,
29, & 31. The mean of the sample is 24.9 miles per gallon, with
an associated standard deviation of about 3.6. Assuming the
population mean =3.71. Find the 95% confidence interval for the
average mileage of the cars for all of the drivers in the
class.
Accidents records by an auto insurance company suggest that the probability that an insured driver has...
Accidents records by an auto insurance company suggest that the
probability that an insured driver has an accident is
0.05
If an accident occurs, the damage to the vehicle amounts to an
average of
$6240.
What premium should the insurance company charge, in order to
have an expected profit of
$1000?
On average the insurer should charge
$....
(Round to 2 decimal points.)
Accidents records by an auto insurance company suggest that theprobability that an insured driver has...
Accidents records by an auto insurance company suggest that the
probability that an insured driver has an accident is 0.15.If an
accident occurs, the damage to the vehicle amounts to an average of
5380.What premium should the insurance company charge, in order to
have an expected profit of 2500?a)On average the insurer should charge _? (round to 2 decimal
points.?
1. Anystate Auto Insurance Company took a random sample of 388 insurance claims paid out during...
1.
Anystate Auto Insurance Company took a random sample of 388
insurance claims paid out during a 1-year period. The average claim
paid was $1585. Assume σ = $238.
Find a 0.90 confidence interval for the mean claim payment. (Round
your answers to two decimal places.)
lower limit
$
upper limit
$
Find a 0.99 confidence interval for the mean claim payment. (Round
your answers to two decimal places.)
lower limit
$
upper limit
$
2.The method of tree ring...
Question #1 Anystate Auto Insurance Company took a random sample of 360 insurance claims paid out...
Question #1
Anystate Auto Insurance Company took a random sample of 360
insurance claims paid out during a 1-year period. The average claim
paid was $1510. Assume σ = $242. Find a 0.90 confidence interval
for the mean claim payment. (Round your answers to two decimal
places.)
lower limit
upper limit
Find a 0.99 confidence interval for the mean claim payment.
(Round your answers to two decimal places.)
lower limit
upper limit
Question #2
Three experiments investigating the relation between...
1. Anystate Auto Insurance Company took a random sample of 376 insurance claims paid out during...
1. Anystate Auto Insurance Company took a random sample of 376
insurance claims paid out during a 1-year period. The average claim
paid was $1560. Assume σ = $242.
Find a 0.90 confidence interval for the mean claim payment. (Round
your answers to two decimal places.)
lower limit
$
upper limit
$
Find a 0.99 confidence interval for the mean claim payment. (Round
your answers to two decimal places.)
lower limit
$
upper limit
$
2.Three experiments investigating the relation...
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