![Pearson eText for Basic Business Statistics -- Instant Access (Pearson+)](https://www.bartleby.com/isbn_cover_images/9780137400119/9780137400119_largeCoverImage.gif)
Concept explainers
An automotive insurance company wants to predict which filled stolen vehicle claims are fraudulent, based on the mean number of claims submitted per year by the policy holder and whether the policy is a new policy, that is, is one year old or less (coded as
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.
![Check Mark](/static/check-mark.png)
Want to see the full answer?
Check out a sample textbook solution![Blurred answer](/static/blurred-answer.jpg)
Chapter 14 Solutions
Pearson eText for Basic Business Statistics -- Instant Access (Pearson+)
- Glencoe Algebra 1, Student Edition, 9780079039897...AlgebraISBN:9780079039897Author:CarterPublisher:McGraw HillHolt Mcdougal Larson Pre-algebra: Student Edition...AlgebraISBN:9780547587776Author:HOLT MCDOUGALPublisher:HOLT MCDOUGAL
![Text book image](https://www.bartleby.com/isbn_cover_images/9780079039897/9780079039897_smallCoverImage.jpg)
![Text book image](https://www.bartleby.com/isbn_cover_images/9780547587776/9780547587776_smallCoverImage.jpg)