12.77 In order to assess the effect in one state of a casualty insurance company’s economic power on its political power, the following model was hypothesized and fitted to data from all 50 states:

Y = b0 + b1X1 + b2X2 + b3X3 + b4x4 + b5X5 + e where Y = ratio of company’s payments for state and local taxes, in thousands of dollars, to total state and local tax revenues in millions of dollars X1 = insurance company state concentration ratio

(a measure of the concentration of banking resources)

X2 = per capita income in the state in thousands of dollars X3 = ratio of nonfarm income to the sum of farm and nonfarm income X4 = ratio of insurance company’s net after-tax income to insurance reserves (multiplied by 1,000)
X5 = average of insurance reserves (divided by 10,000)
Part of the computer output from the estimated regression is shown here. Write a report summarizing the findings of this study.
R@Square = 0.515 Parameter Estimate Student’s t for H0 :
Parameter = 0 Std. Error of Estimate Intercept 10.60 2.41 4.40 X1 -0.90 -0.69 1.31 X2 0.14 0.50 0.28 X3 -12.85 -2.83 4.18 X4 0.080 0.50 0.160 X5 0.100 5.00 0.020