Question: hi, can anyone help me answering the question and please provide me the calculation step by manually calculating the answer. ty b. The fire insurance
hi, can anyone help me answering the question and please provide me the calculation step by manually calculating the answer. ty

b. The fire insurance company wants to relate the amount of fire damage in major residential fires to the distance between burning house and the nearest fire station. The study is conducted in a large city and a sample of 15 recent fires is selected. The amount of damage is in thousands of Ringgit Malaysia and the distance is in kilometres between the fires location and nearest fire station. A regression analysis was conducted onto the data and the result using SPSS software is as follows: Regression Statistics Multiple R 0.96097 R Square 0.92348 Adjusted R Square 0.91759 Standard Error 2.31646 Observations 15 CONFIDENTIAL/4 FBA/PFS1243/NOV20 ANOVA: df SS MS F Significance F Regression 1 841.7664 841.7664 158.88 1.2479E-09 Residual 13 69.7509 5.3664 6 Total 14 911.5173 Dependent: Fire damage in (RM thousands) Coefficients Standard t Stat P value Lower Upper Error 95% 95% Intercept 10.2779 1.4202 7.2366 0.0000 7.2096 13.3463 Distance 4.9193 0.3927 12.5254 0.0000 4.0709 6.7879 from fire station Based on given output figure, i. Interpret the meaning of bo and bi. (4 marks) ii. State the linear regression model. (2 marks) iii. Determine the coefficient of determination, R and interpret the value. (3 marks) iv. Using 5% level of significance, is there a significant linear relationship between the fire damage (in thousands) and the distance from fire station? (8 marks) v. Predict the cost of fire damage if distance between burning houses and the nearest fire station is about 40 kilometers
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
