6. (10 pis.) Lucy Mendoza is conducting research on monthly medical care expenses for the company's employees (and their families) with or without insurance. Her dependent variable is monthly expenses for medical care while her independent variables are number of family members (XI) and insurance type (government funded or private insurance). She has coded insurance type as follows: X2 = 1 if government funded, 0 otherwise X3 =1 if private insurance, 0 otherwise Below is her Excel output: Coefficients Standard Error t Stat P-value Intercept 144.91 1025.911 0.141246 0.889688 X1 11.63 1.247247 9.330762 X2 -13.70 8.786907 -1.55916 X3 -9.11 1.166068 7.810781 (a) Based on her model, how much is the forecasted monthly expenses for a family of four with private insurance? (b) How much is the forecasted monthly expenses for a family of five with no insurance? (c) What is the interpretation of the coefficient of XI? coefficient of X2? (d) If the model is to be reduced to only two independent variables, which independent variable should be dropped (assume .05 level of significance)? Justify your