A fire insurance company wants to relate the amount of fire damage in r fires to the distance between the residence and the nearest fire station. conducted in a large suburb of a major city; a sample of fifteen recent fir was selected. The amount of damage, y (£000), and the distance, x (k fire and the nearest fire station are given in the following table.

MATLAB: An Introduction with Applications
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Author:Amos Gilat
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Chapter1: Starting With Matlab
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(a)  Fit a simple linear regression model to these data. Check if the residual plots give any reason to doubt the usual assumptions of the model.

(b)  Write a short report giving your conclusions. You do not need to upload the output from R. Include a possible interpretation of the intercept and slope parameters.

A fire insurance company wants to relate the amount of fire damage in major residential
fires to the distance between the residence and the nearest fire station. The study was
conducted in a large suburb of a major city; a sample of fifteen recent fires in the suburb
was selected. The amount of damage, y (£000), and the distance, x (km), between the
fire and the nearest fire station are given in the following table.
3.4
1.8
4.6
2.3
3.1
5.5
0.7
3.0
y 26.2
17.8 31.3 23.1
27.5
36.0
14.1
22.3
2.6
4.3
2.1
1.1
6.1
4.8
3.8
19.6 31.3 24.0 17.3 43.2
36.4 26.1
Transcribed Image Text:A fire insurance company wants to relate the amount of fire damage in major residential fires to the distance between the residence and the nearest fire station. The study was conducted in a large suburb of a major city; a sample of fifteen recent fires in the suburb was selected. The amount of damage, y (£000), and the distance, x (km), between the fire and the nearest fire station are given in the following table. 3.4 1.8 4.6 2.3 3.1 5.5 0.7 3.0 y 26.2 17.8 31.3 23.1 27.5 36.0 14.1 22.3 2.6 4.3 2.1 1.1 6.1 4.8 3.8 19.6 31.3 24.0 17.3 43.2 36.4 26.1
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