Fire damage in the United States amounts to billions of dollars, much of it insured. The time taken to arrive at the fire is critical. This raises the question, "Should insurance companies lower premiums if the home to be insured is close to a fire station?" To help make a decision, a study was undertaken wherein a number of fires were investigated. The distance to the nearest fire station (in miles) and the percentage of fire damage were recorded for a sample of 85 recent fires. Use the StatCrunch output below to answer the following questions.

a. Interpret the value of r2 in context.

b. What is the estimated regression equation? Interpret the slope in context.

Percentage Fire Damage Simple linear regression results: 80 Sample size: 85 R (correlation coefficient) = 0.7074 (