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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. After performing a regression, they find that the relationship is (claims per year) = 0.32*(age) + 6.6. If a customer is 40 years old and they make an average of 10.91 claims per year, what is the residual?
Question 9 options:
1)-8.49
2)29.09
3)20.6
4)8.49
5)-29.09
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