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Part 1 Life insurance companies are keenly interested in predicting how long their customers will live, because their premiums and profitability depend on such numbers.

Part 1

Life insurance companies are keenly interested in predicting how long their customers will live, because their premiums and profitability depend on such numbers. Data were gathered for 100 deceased males, in order to formulate a regression that predicted longevity based on:

* Age at death of the two parents

* Mean age at death of grandfather and grandmothers

Questions

a. Perform a multiple regression analysis and show the prediction equation.

b. Is the model useful at 2.5% significance level?

c. Interpret the coefficients b1 and b2 in this model.

Part 2 (see Longevity (2)

A statistician working for the company suggeted smoking is a major determinant of a person's longevity. He added this variable as a predictor to the first group of independent variables, but also took out the insignificant variables from the previous model of Part 1.

Questions

d. Run the reduced model (that now includes only three independant variavles), and show the prediction equation.

e. Interpret the coefficient of the predictor "Smoker" in this model (that is, if say, the value of this coefficient is 4, what does it mean in this model).

f. A smoker, whose both parents passed at the age of 85 is 62 years old. How many more years is he expected to live?

g. His friend is not a smoker who lost his mother when she was 70 years old, and father when he was 60 years old. How long is he expected to live?

h. Can you determine with 90% confidence which of the two friends will die at a younger age?

Longevity 1:

Longevity

Mother Father Gmothers Gfathers
80 85 78 72 71
73 88 63 76 66
70 66 75 67 57
72 72 67 68 55
79 88 73 64 73
83 90 72 74 62
70 67 65 70 59
72 76 71 74 61
72 66 75 71 63
71 78 64 76 61
67 69 66 61 69
74 71 76 73 60
80 74 77 69 68
63 68 66 67 67
71 70 70 71 67
66 64 66 63 57
74 82 71 75 65
71 71 71 68 62
65 75 60 63 62
74 76 66 66 69
66 69 68 61 65
71 76 67 63 71
73 69 80 64 61
74 79 70 77 60
68 74 62 59 63
77 81 78 73 62
77 85 69 80 65
74 77 69 75 69
68 72 71 72 66
68 75 63 65 65
74 82 66 72 62
71 73 72 68 71
80 84 73 77 68
72 75 61 77 61
77 82 76 71 63
76 88 69 75 67
62 65 57 68 57
70 75 57 67 57
71 72 67 67 64
69 72 63 68 67
73 79 71 74 65
72 77 69 72 65
84 80 90 72 71
73 76 74 69 65
70 78 70 78 54
78 75 74 58 70
82 83 78 77 65
77 75 66 72 60
67 68 69 73 62
72 69 72 69 68
67 67 67 72 66
72 78 64 67 66
75 73 69 71 61
72 71 66 68 68
75 73 73 66 59
80 84 75 71 74
72 78 64 66 61
71 76 61 74 61
71 77 70 73 61
89 86 77 74 69
74 79 71 70 77
72 72 77 71 68
74 78 68 67 72
77 85 77 77 71
77 72 72 63 64
73 67 71 65 69
72 74 64 74 62
65 66 63 72 60
81 82 77 73 69
76 80 70 63 60
64 71 67 66 66
72 73 69 64 67
69 75 67 60 62
59 59 62 68 56
69 73 69 72 53
76 82 65 72 69
63 71 56 61 53
66 74 64 72 63
72 85 60 67 67
68 72 66 65 68
73 80 75 67 67
78 82 72 71 72
83 82 82 76 72
78 82 70 76 64
67 73 62 65 59
70 77 60 69 67
68 74 79 72 65
66 80 63 75 59
75 76 72 69 64
71 71 60 71 66
72 77 64 70 69
71 76 67 66 64
77 79 74 73 70
67 68 68 70 57
68 71 61 66 64
67 76 62 66 62
74 77 64 66 69
70 66 68 63 66
72 78 70 71 64
69 73 60 74 60

Longevity 2:

Gmothers Gfathers Smoker
72 71 No
76 66 Yes
67 57 Yes
68 55 Yes
64 73 No
74 62 No
70 59 Yes
74 61 Yes
71 63 Yes
76 61 Yes
61 69 Yes
73 60 No
69 68 No
67 67 Yes
71 67 Yes
63 57 Yes
75 65 No
68 62 Yes
63 62 Yes
66 69 No
61 65 Yes
63 71 Yes
64 61 Yes
77 60 No
59 63 Yes
73 62 No
80 65 No
75 69 Yes
72 66 Yes
65 65 Yes
72 62 No
68 71 Yes
77 68 No
77 61 Yes
71 63 No
75 67 No
68 57 Yes
67 57 Yes
67 64 Yes
68 67 Yes
74 65 Yes
72 65 Yes
72 71 No
69 65 Yes
78 54 Yes
58 70 No
77 65 No
72 60 No
73 62 Yes
69 68 Yes
72 66 Yes
67 66 Yes
71 61 No
68 68 Yes
66 59 No
71 74 No
66 61 Yes
74 61 Yes
73 61 Yes
74 69 No
70 77 No
71 68 Yes
67 72 No
77 71 No
63 64 No
65 69 Yes
74 62 Yes
72 60 Yes
73 69 No
63 60 No
66 66 Yes
64 67 Yes
60 62 Yes
68 56 Yes
72 53 Yes
72 69 No
61 53 Yes
72 63 Yes
67 67 Yes
65 68 Yes
67 67 Yes
71 72 No
76 72 No
76 64 No
65 59 Yes
69 67 Yes
72 65 Yes
75 59 Yes
69 64 No
71 66 Yes
70 69 Yes
66 64 Yes
73 70 No
70 57 Yes
66 64 Yes
66 62 Yes
66 69 No
63 66 Yes
71 64 Yes
74 60 Yes

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