Using data from R  (a) difference between fit of the models what evidence for the significance of the interaction term ? (b) calculate average claim size, with no legal rep and operational time is 24 months  (c) sketch plot of log of average claims against operation time  x1  is operational time  x2  is binary variable (0 - no legal, 1-legal )

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Using data from R 

(a) difference between fit of the models what evidence for the significance of the interaction term ?

(b) calculate average claim size, with no legal rep and operational time is 24 months 

(c) sketch plot of log of average claims against operation time 

x is operational time 

x is binary variable (0 - no legal, 1-legal ) 

Question 3 continued
Coefficients:
Estimate Std. Error t value Pr (>It|)
<2e-16 ***
(Intercept) 8.3584971 0.0244106 342.41
op_time
legrep
0.0350800 0.0003872 90.59
0.2374495 0.0218372. 10.87
<2e-16 ***
<2e-16 ***
Signif. codes: 0 **** 0.001 ***0.01 * 0.05 . 0.1 " 1
(Dispersion parameter for Gamma family taken to be 2.422671)
Null deviance: 44010 on 22035 degrees of freedom
Residual deviance: 25500 on 22033 degrees of freedom
AIC: 491031
Summary of model with both factors, operational time (op_time) and legal
representation (legrep).
Coefficients:
Estimate Std. Error t value Pr (>[t])
(Intercept)
op time
legrep
op time:legrep -0.0049978 0.0008002 -6.246 4.29e-10 ***
8.2118447 0.0329095 249.528
< 2e-16 ***
< 2e-16 ***
0.4667863 0.0424613 10.993 < 2e-16 ***
0.0383149 0.0006311 60.707
Signif. codes: 0 **** 0.001 **' 0.01 * 0.05 .' 0.1 '' 1
(Dispersion parameter for Gamma family taken to be 2.432031)
Null deviance: 44010
Residual deviance: 25412
on 22035 degrees of freedom
on 22032 degrees of freedom
AIC: 490944
Summary of model with both factors and interaction term.
6G6Z3005_2122_B2
Transcribed Image Text:Question 3 continued Coefficients: Estimate Std. Error t value Pr (>It|) <2e-16 *** (Intercept) 8.3584971 0.0244106 342.41 op_time legrep 0.0350800 0.0003872 90.59 0.2374495 0.0218372. 10.87 <2e-16 *** <2e-16 *** Signif. codes: 0 **** 0.001 ***0.01 * 0.05 . 0.1 " 1 (Dispersion parameter for Gamma family taken to be 2.422671) Null deviance: 44010 on 22035 degrees of freedom Residual deviance: 25500 on 22033 degrees of freedom AIC: 491031 Summary of model with both factors, operational time (op_time) and legal representation (legrep). Coefficients: Estimate Std. Error t value Pr (>[t]) (Intercept) op time legrep op time:legrep -0.0049978 0.0008002 -6.246 4.29e-10 *** 8.2118447 0.0329095 249.528 < 2e-16 *** < 2e-16 *** 0.4667863 0.0424613 10.993 < 2e-16 *** 0.0383149 0.0006311 60.707 Signif. codes: 0 **** 0.001 **' 0.01 * 0.05 .' 0.1 '' 1 (Dispersion parameter for Gamma family taken to be 2.432031) Null deviance: 44010 Residual deviance: 25412 on 22035 degrees of freedom on 22032 degrees of freedom AIC: 490944 Summary of model with both factors and interaction term. 6G6Z3005_2122_B2
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