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1. Insurance companies are known to charge different insurance rate for different categories of its customers, such as the age of the insured. Table 1
1. Insurance companies are known to charge different insurance rate for different categories of its customers, such as the age of the insured. Table 1 below shows the average insurance premium, the adjusted insurance premium, and the average insurance claim grouped by age. a. Calculate the correlation coefficient between the premiums (average premium; adjusted premium) and claim values. b. Interpret the results of the correlation coefficients.
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