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Based on the regression model shown below from the POInT Case, should any of the independent variables be removed from the model to predict healthcare
Based on the regression model shown below from the POInT Case, should any of the independent variables be removed from the model to predict healthcare charges because they are not statistically significant? SUMMARY OUTPUT: REGRESSION OF HEALTHCARE CHARGES (POInT Case Suggested Model) Note that Smoker, the BMI categories, and their interactions are all included as indicator variables Regression Statistics Multiple R 0.930 R Square 0.864 Adjusted R Square 0.863 Standard Error 4475 Observations 1200 ANOVA of SS MS F Significance F Regression 10 151747319576 15174731958 757.74 0 Residual 1189 23811122864 20026176 Total 1199 175558442440 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Intercept 2142 1162 1.843 0.066 138 4422 age -26 64 0.404 0.686 -151 100 age_sq 1 4.627 0.000 2 5 children 675 112 6.037 0.000 455 894 Smoker 12274 728 16.853 0.000 10845 13703 BMI [25,30) 142 437 0.325 0.745 715 999 BMI[30,35) 216 437 0.494 0.621 -641 1072 BMI>=35 192 467 0.413 0.680 -723 1108 Smoker* BMI[25,30) 1937 960 2.019 0.044 54 3820 Smoker* BMI [30,35) 19148 949 20.185 0.000 17287 21009 Smoker* BMI[35+) 22502 971 23.185 0.000 20598 24406 O No - any insignificant terms included have significant interactions or non-linear effects and therefore should be kept in the model. O Yes, age (but not age_squared) should be removed. O Yes, the indicator for BMI between 25-30 (BMI[25,30)) should be removed. Yes, the indicator for BMI greater than 35 (BMI[35+)) should be removed
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