Question 7

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 influenced 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 the following results:

SSR = 200,000

SST = 800,000

Compute the F value for testing: H₀: ₁ = ₂ =₃ =0 against

H₁: at least one of the _i 0

and state whether the results are statistically significant or not.

Question 7 options:

	F = 6.67; Statistically Significant
	F = 30.00; Statistically Significant
	F = 2.44; Not Statistically Significant
	F = 30.00; Not Statistically Significant
	F = 6.67; Not Statistically Significant