The amount of car insurance premiums is determined by several factors by insurance companies. Each company uses a few different statistical models to come up with the premium. While not all companies use the same parameters, here's a list of what commonly determines the bottom line on our auto policy:

* Driving record - Accidents or traffic violations negatively affect the premium

* Miles drove in the car - A positive relation exists between the miles driven and the premium. The more a car is driven, the higher would be the cost of insurance premium. * Location - Urban drivers usually pay a higher premium due to the probability of vandalism, theft, and accident. In general, those who live in small cities usually pay less. * Age - In general, mature drivers pay less compared to young and teenage drivers, especially those below 25 years old. * Gender -Women tend to pay a lower premium because they tend to get into fewer accidents, have fewer driver-under-the-influence accidents (DUIs), andmost importantlyhave less serious accidents than men. *Types of cars - The cost of your car is also a major factor in the cost of insurance.

Including these factors in premium calculation depends on each company's policy. Recently, a newly established insurance company hired a consulting firm to conduct a study and to come up with some statistical insights on their database to help them understand the relationship between some of the factors. Their database includes information on miles driven in the previous year, the age of the drivers, and their gender.

In the first phase of the project, the consulting firm was requested to shed light on a statistical summary before they engage in a more in-depth analysis of the information available in their database. As such, the consulting firm decided to present the summary for the miles driven, regardless of the age and gender factors, for a random sample of 200 drivers.

Phase 1: Please complete the following tasks for this phase:

a) Describe the problem background and purpose of the study b) Describe the variables included in the study