Waterbury Insurance Company wants to study the relationship between the amount of fire damage and the distance between the burning house and the nearest fire station. This information will be used in setting rates for insurance coverage. For a sample of 30 claims for the last year, the director of the actuarial department determined the distance from the fire station (X) and the amount of fire damage, in thousands of dollars (Y). The MegaStat output is reported below.

ANOVA table
Source	SS	df	MS	F
Regression		1,830.5782			1			1,830.5782			41.15
Residual		1,245.4934			28			44.4819
Total		3,076.0716			29

Regression output
Variables	Coefficients	Std. Error	t(df=28)
Intercept		14.1988			3.137			2.962
Distance-X		3.9798			8.842			6.41

a-1.	Write out the regression equation.(Round your answers to 3 decimal places.)

Y=+X.

a-2.	Is there a direct or indirect relationship between the distance from the fire station and the amount of fire damage?

The relationship between distance and damage is(Click to select)directinverse.

b.	How much damage would you estimate (in dollars) for a fire 9 miles from the nearest fire station?(Round your answer to the nearest dollar amount.)

Estimated damage

$

c-1.	Determine the coefficient of determination.(Round your answer to 3 decimal places.)

Coefficient of determination

c-2.	Fill in the blank below.(Round your answer to 1 decimal place.)

% of the variation in damage is explained by variation in distance.

d-1	Determine the coefficient of correlation.(Round your answer to 3 decimal places.)

Coefficient of correlation

d-2	Choose the right option.

There is a fairly solid(Click to select)inversedirectlink between the variables.

d-3	How did you determine the sign of the correlation coefficient?

It is(Click to select)negativezeropositivebecause the slope is(Click to select)positivenegativezero.

e-1	State the decision rule for .01 significance level:H0:= 0;H1: 0.(Negative amounts should be indicated by a minus sign. Round your answers to 3 decimal places.)

RejectH₀ift

e-2.	Compute the value of the test statistic.(Round your answer to 2 decimal places.)

Value of the test statistic

e-3.	Is there any significant relationship between the distance from the fire station and the amount of damage? Use the .01 significance level.

(Click to select)Do not rejectRejectH₀. There is(Click to select)significantno significantrelationship between distance and fire damage.