=+25. Insurance (life expectancy). Insurance companies base their premiums on many factors, but basically all the factors are variables that predict life expectancy. Life expectancy varies from place to place. Here’s a regression that models Life Expectancy in terms of other demographic variables.

The variables are Murder rate per 100,000, HighSchool Graduation rate in %, Income per capita in dollars, Illiteracy rate per 1000, and Life Expectancy in years.

Dependent variable is: Life exp R-squared = 67.0% R-squared (adjusted) = 64.0%

s = 0.8049 with 50 - 5 = 45 degrees of freedom Source Sum of Squares df Mean Square F-ratio Regression 59.1430 4 14.7858 22.8 Residual 29.1560 45 0.647910 Variable Coeff SE(Coeff) t-ratio P-value Intercept 69.4833 1.325 52.4 60.0001 Murder -0.261940 0.0445 -5.89 60.0001 HSGrad 0.046144 0.0218 2.11 0.0403 Income 1.24948e - 4 0.0002 0.516 0.6084 Illiteracy 0.276077 0.3105 0.889 0.3787