Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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 ()). ANOVA table Source 55 df MS Regression 1, 865.5782 1 1, 865.5782 39.71 Residual 1, 315.4934 28 46.9819 Total 3,181.0716 29 Regression output Standard Variables Coefficients Error t(df=28) Intercept 12.55375 3.0301 3.678 Distance-X 3.4664 0.5501 6.3 Click here for the Excel Data File a-1. Determine the regression equation. (Round your answers to 3 decimal places.) X. a-2. Is there a direct or indirect relationship between the distance from the fire station and the amount of fire damage? Answer is complete and correct. The relationship between distance and damage is direct.b. How much damage would you estimate for a fire 10 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. Interpret the coefficient of determination. (Round your answer to one decimal place.) * Answer is not complete. % of the variation in damage is explained by variation in distance. d-1. Determine the correlation coefficient. (Round your answer to 3 decimal places.) Correlation coefficiente-1. State the decision rule for 0.01 significance level: He : p = 0; H1 : p # 0. (Negative value should be indicated by a minus sign. Round your answers to 3 decimal places.) Reject Ho if t
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started