Consider the following computer output from a multiple regression analysis relating the cost of car insurance to the variables: number of car accidents, driver's credit score, and safety rating of the car. Intercept Car Accidents (In last 3 years) Credit Score Safety Rating Answer Coefficients Standard Error 1048 188.64 115.28 -242.33 Does the sign of the coefficient for the variable credit score make sense? Coefficients 106.36 19.85 205.69 23.12 t Stat 9.853 9.503 ; P-value 0.0000 0.0000 0.560 0.5774 - 10.481 0.0000 O Yes, because it is expected that as the credit score increases then the cost should decrease. O No, because it is expected that as the credit score increases then the cost should decrease. O No, because it is expected that as the credit score increases then the cost should also increase. O Yes, because it is expected that as the credit score increases then the cost should also increase. Keypad Keyboard Shortcuts Tables

MATLAB: An Introduction with Applications
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Author:Amos Gilat
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Consider the following computer output from a multiple regression analysis relating the cost of car insurance to the variables: number of car accidents, driver's credit
score, and safety rating of the car.
-
Answer
Intercept
Car Accidents
(In last 3 years)
Credit Score
Safety Rating
Coefficients Standard Error
1048
188.64
115.28
-242.33
Does the sign of the coefficient for the variable credit score make sense?
Coefficients
106.36
19.85
205.69
23.12
P-value
9.853 0.0000
t Stat
9.503 ;
0.0000
0.560
0.5774
- 10.481 0.0000
O Yes, because it is expected that as the credit score increases then the cost should decrease.
O No, because it is expected that as the credit score increases then the cost should decrease.
O No, because it is expected that as the credit score increases then the cost should also increase.
O Yes, because it is expected that as the credit score increases then the cost should also increase.
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Transcribed Image Text:Consider the following computer output from a multiple regression analysis relating the cost of car insurance to the variables: number of car accidents, driver's credit score, and safety rating of the car. - Answer Intercept Car Accidents (In last 3 years) Credit Score Safety Rating Coefficients Standard Error 1048 188.64 115.28 -242.33 Does the sign of the coefficient for the variable credit score make sense? Coefficients 106.36 19.85 205.69 23.12 P-value 9.853 0.0000 t Stat 9.503 ; 0.0000 0.560 0.5774 - 10.481 0.0000 O Yes, because it is expected that as the credit score increases then the cost should decrease. O No, because it is expected that as the credit score increases then the cost should decrease. O No, because it is expected that as the credit score increases then the cost should also increase. O Yes, because it is expected that as the credit score increases then the cost should also increase. Tables Keypad Keyboard Shortcuts
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