A study by InsuranceQuotes.com found that homeowners with poor credit pay 91% more for home insurance than people with excellent credit.
(a) A quote in the article stated, "Insurers have found a direct correlation between a consumer's credit and the likelihood that he or she will make a home (or auto) claim." Explain what is wrong with this quote.
(b) Credit scores may be classified as Excellent, Good, Fair, and Poor. Explain how you might go about deciding whether credit scores might be used to determine whether an individual files a claim on his or her homeowner's insurance policy or not. Include an explanation of the type of inferential procedure you would use