A random sample of 7 drivers insured with a company and having similar auto insurance policies was

selected. The following table lists their driving experience (in years) and monthly auto insurance

premiums.

Driving Experience 7 15 12 10 4 2 7

Monthly Insurance Premium ($) 79 40 45 50 75 85 60

(a) Find the estimated least squares regression line.

(b) Interpret the estimated slope value.

(c) Calculate the coefficient of correlation (r) and interpret the result.

(d) Test the regression coefficient with six necessary steps mentioning appropriate hypothesis at

the 5% significance level.