Question
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) = 0.167*(age) + 2.225. If a customer is 55 years old, how many claims would you expect them to make in a given year?
Question 2 options:
1)We do not know the observations in the data set, so we cannot answer that question.
2)316.02
3)11.41
4)9.19
5)122.54
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