Concept explainers
Modeling monthly collision claims. A medium-sized automobile insurance company is interested in developing a regression model to help predict the monthly collision claims of its policyholders. A company analyst has proposed modeling monthly collision claims (y) in the Middle Atlantic states as a
a. Use a statistical software package to fit the complete second-order model
- b. Test the hypothesis H0: β4 = β5 = 0 using α = .05. Interpret the results in practical terms.
- c. Do the results support the analysts’ beliefs? Explain. (You may need to conduct further tests of hypotheses to answer this question.)
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Chapter 12 Solutions
Statistics for Business and Economics Plus MyLab Statistics with Pearson eText -- Title-Specific Access Card Package (13th Edition)
- Olympic Pole Vault The graph in Figure 7 indicates that in recent years the winning Olympic men’s pole vault height has fallen below the value predicted by the regression line in Example 2. This might have occurred because when the pole vault was a new event there was much room for improvement in vaulters’ performances, whereas now even the best training can produce only incremental advances. Let’s see whether concentrating on more recent results gives a better predictor of future records. (a) Use the data in Table 2 (page 176) to complete the table of winning pole vault heights shown in the margin. (Note that we are using x=0 to correspond to the year 1972, where this restricted data set begins.) (b) Find the regression line for the data in part ‚(a). (c) Plot the data and the regression line on the same axes. Does the regression line seem to provide a good model for the data? (d) What does the regression line predict as the winning pole vault height for the 2012 Olympics? Compare this predicted value to the actual 2012 winning height of 5.97 m, as described on page 177. Has this new regression line provided a better prediction than the line in Example 2?arrow_forwardLife Expectancy The following table shows the average life expectancy, in years, of a child born in the given year42 Life expectancy 2005 77.6 2007 78.1 2009 78.5 2011 78.7 2013 78.8 a. Find the equation of the regression line, and explain the meaning of its slope. b. Plot the data points and the regression line. c. Explain in practical terms the meaning of the slope of the regression line. d. Based on the trend of the regression line, what do you predict as the life expectancy of a child born in 2019? e. Based on the trend of the regression line, what do you predict as the life expectancy of a child born in 1580?2300arrow_forwardWhat is regression analysis? Describe the process of performing regression analysis on a graphing utility.arrow_forward
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