Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ABC Insurance Company wants to study the relationship between the amount of fire damage and the distance between the burning house and the nearest fire

ABC Insurance Company wants to study the relationship between the amount of fire damage and the distance between the burning house and the nearest fire station. The information will be used in setting rates for insurance coverage. For a sample of 30 claims for the last year, the director of the actuarial department determined the distance from the fire station(x) and the amount of fire damage, in thousands of dollars (y). The computer output is as follows: Anova Table Source SS df MS F Regression 1, 864.5782 1 1, 864.5782 38.83 Residual 1,344.4934 28 48.0176 Total 3, 209.0716 29 Regression output Variables Coefficients Std. Error t(df = 28) Intercept 12.3601 3.2915 3.755 Distance - X 4.7956 0.7696 6.231 1. Write out the regression equation. 2. How much damage would you estimate for a fire 5 km from the nearest fire station. 3. Determine the coefficient of determination. 4. Determine the coefficient of correlation. 5. Conduct a test of hypothesis to determine if there is a significant relationship between the distance from the fire station and the amount of damage. (Use the 0.01 significance level and a two tailed test)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Calculus Single Variable

Authors: Howard Anton, Irl C Bivens, Stephen Davis

11th Edition

1118885686, 9781118885680

More Books

Students also viewed these Mathematics questions

Question

What has been your desire for leadership in CVS Health?

Answered: 1 week ago

Question

Question 5) Let n = N and Y Answered: 1 week ago

Answered: 1 week ago