A study investigated the link between speed of an automobile at the time of a crash, and the cost of the insurance claim. Below is the residual plot and the output from Excel.SUMMARY OUTPUTRegression StatisticsMultiple R0.17652R Square0.03116Adjusted R Square0.03116Standard Error0.42014Observations225ANOVA dfSSMSFSignificance FRegression11.2661.2667.17170.00795Residual22339.3630.1765Total22440.629 CoefficientsStandard Errort-StatP-valueLower 95%Upper 95%Intercept0.8432.20680.3820.703-3.50665.1926X Variable 10.0038070.0014222.6780.007950.0010.0066Are there any assumptions for regression that you feel ought to be examined?The residuals to do not average zero since the middle is about 50Normality because there are a lot of outliers on the low end Linearity because of the rainbow type curveIndependence because there are more high speed crashes than low speed crashesConstant Variance because some residuals are high while others are lowTest whether increased speed is linked with the claim cost.

Regression analysis is useful to test if there exists significant relationship between two…

Answered: Test whether increased speed is linked…

Linear Algebra: A Modern Introduction

4th Edition

ISBN:9781285463247

Author:David Poole

Publisher:David Poole

Chapter7: Distance And Approximation

Section7.3: Least Squares Approximation

Problem 31EQ

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Question

A study investigated the link between speed of an automobile at the time of a crash, and the cost of the insurance claim. Below is the residual plot and the output from Excel.

SUMMARY OUTPUT

Regression Statistics
Multiple R	0.17652
R Square	0.03116
Adjusted R Square	0.03116
Standard Error	0.42014
Observations	225

ANOVA

	df	SS	MS	F	Significance F
Regression	1	1.266	1.266	7.1717	0.00795
Residual	223	39.363	0.1765
Total	224	40.629

	Coefficients	Standard Error	t-Stat	P-value	Lower 95%	Upper 95%
Intercept	0.843	2.2068	0.382	0.703	-3.5066	5.1926
X Variable 1	0.003807	0.001422	2.678	0.00795	0.001	0.0066

Are there any assumptions for regression that you feel ought to be examined?

The residuals to do not average zero since the middle is about 50Normality because there are a lot of outliers on the low end Linearity because of the rainbow type curveIndependence because there are more high speed crashes than low speed crashesConstant Variance because some residuals are high while others are low

Test whether increased speed is linked with the claim cost.

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