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Concept explainers
An automotive insurance company wants to predict which filled stolen vehicle claims are fraudulent, based on the
a. Develop a logistic regression model to predict the
b. Explain the meaning of the regression coefficients in the model in (a).
c. Predict the probability of a fraudulent claim given that the policy holder has submitted a
mean of one claim per year and holds a new policy.
d. At the 0.05 level of significance, is there evidence that a logistic regression model that uses the mean number of claims submitted per year by the policy holder and whether the policy is new to predict the probability of a fraudulent claim is a good fitting model?
e. At the 0.05 level of significance, is there evidence that a mean number of claims submitted per year by the policy holder and whether the policy is new each makes a significant contribution to the logistic model?
f. Develop a logistic regression model that includes only the number of claims submitted per year by the policy holder to predict the probability of a fraudulent claim.
g. Develop a logistic regression model that includes only whether the policy is new to predict a fraudulent claim.
h. Compare the models in (a), (f), and (g). Evaluate the difference among the models.
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Chapter 14 Solutions
EBK BASIC BUSINESS STATISTICS
- Glencoe Algebra 1, Student Edition, 9780079039897...AlgebraISBN:9780079039897Author:CarterPublisher:McGraw HillHolt Mcdougal Larson Pre-algebra: Student Edition...AlgebraISBN:9780547587776Author:HOLT MCDOUGALPublisher:HOLT MCDOUGAL
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