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While attempting to measure its risk exposure for the upcoming year, an insurance company notices a trend between the age of a customer and the
While attempting to measure its risk exposure for the upcoming year, an insurance company notices a trend between the age of a customer and the number of claims per year. It appears that the number of claims keep going up as customers age. If 10 customers are sampled and the regression output is given below, what can we conclude about the slope of age? Predictor Coet Stdev t-ratio P Constant 12 . 101 2. 4849 4. 87 0. 0012 age 0. 012 0. 0521 0.22 0. 8286 - 1.154 R-8q - 0. 624 Raq(adj) = -11.8% Analysis of Variance SOURCE DF 55 HS Regression 1 0.1 0.1 0. 05 D. 8286 Error 10. 6 1 . 3 Total 10.7 O 1) The slope is 0.012 and therefore differs from 0. O 2) The slope significantly differs from 0. (3) Since we are not given the dataset, we do not have enough information to determine if the slope differs from 0. ()4) Not enough evidence was found to conclude the slope differs significantly from 0. 5) The slope is equal to O
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