Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

U.S. Department of TransportationAs an auto insurance risk analyst, it is your job to research risk profiles for various types of drivers. One common area

image text in transcribed

U.S. Department of TransportationAs an auto insurance risk analyst, it is your job to research risk profiles for various types of drivers. One common area of concern for auto insurance companies is the risk involved when offering policies to younger, less experienced drivers. The U.S. Department of Transportation recently conducted a study in which it analyzed the relationship between 1) the number of fatal accidents per 1000 licenses, and 2) the percentage of licensed drivers under the age of 21 in a sample of 42 cities.Your first step in the analysis is to construct a scatterplot of the data.

image text in transcribed
2.5 Fatal accidents per 10 15 . . .. O 6 8 10 12 14 16 18 20 Percentage of drivers under age 21 Upon visual inspection, you determine that the variables do have a linear relationship. After a linear pattern has been established visually, you now proceed with performing linear regression analysis. The results are as follows: TABLE. LINEAR REGRESSION OUTPUT FOR U.S. DEPARTMENT OF TRANSPORTATION PROBLEM Coefficients Standard Error t Statistic p-value Intercept -1.5974 0.3717 -4.2979 0.0001 Percent Under 21 0.2871 0.0294 9.7671 0.0000 What is the predicted value for accidents per 1000 licenses for a city that has 13% of its licensed drivers under age 21, according to the estimated regression equation? 2.634 2.962 1.142 2.135

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Marketing And Export Management

Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr

8th Edition

1292016922, 978-1292016924

More Books

Students also viewed these Mathematics questions

Question

6. How can a message directly influence the interpreter?

Answered: 1 week ago