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An insurance company is interested in determining whether there was a relationship between Y = amount insured (in thousands of dollars) and three variables that
An insurance company is interested in determining whether there was a relationship between Y = amount insured (in thousands of dollars) and three variables that they believe inuenced the amount of insurance that the individual purchased. These variables are: X1 = age of the person who is being insured. X2 = The income of the person who is being insured X3 = 1 if the person was healthy in terms of build and blood pressure = 0 otherwise. To study this further, they took a sample of 64 policies and obtained an R squared value of 0.60. Compute the F value for testing: H0: [51 = [52 :03 =0 against H1: at least one of the Bi 1 0 and state whether the results are statistically signicant or not. O F = 6.67, Not Statistically Significant O F = 2.44. Not Statistically Significant O F = 30.00, Statistically Significant O F = 6.67, Statistically Significant O F = 30.00, Not Statistically Significant
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