**Understanding Multiple Regression Analysis: Car Insurance Cost**Consider the following analysis output from a multiple regression model. This model relates the cost of car insurance to variables such as the number of car accidents, driver's credit score, and the safety rating of the car.| **Coefficients** | **Coefficients** | **Standard Error** | **t Stat** | **P-value** ||------------------------|------------------|--------------------|------------|-------------|| **Intercept** | 1278 | 129.86 | 9.841 | 0.0000 || **Car Accidents (In last 3 years)** | 230.04 | 23.23 | 9.903 | 0.0000 || **Credit Score** | -140.58 | 14.97 | -9.391 | 0.0000 || **Safety Rating** | 328.63 | 397.29 | 0.827 | 0.4117 |**Analysis:**- **Intercept (1278):** Represents the base cost of car insurance without considering other variables.- **Car Accidents (230.04):** A positive coefficient indicates that more accidents increase insurance costs, with a statistically significant P-value of 0.0000.- **Credit Score (-140.58):** A negative coefficient suggests higher credit scores decrease costs, also highly significant statistically.- **Safety Rating (328.63):** Although the coefficient is positive, the high P-value (0.4117) implies it is not statistically significant, which questions its impact on cost.**Question:**Does the sign of the coefficient for the variable safety rating make sense?**Answer Options:**- ○ No, because it is expected that as the safety rating increases then the cost should decrease.- ○ Yes, because it is expected that as the safety rating increases then the cost should decrease.- ○ No, because it is expected that as the safety rating increases then the cost should also increase.- ○ Yes, because it is expected that as the safety rating increases then the cost should also increase.

SolutionThe given table is the regression analysis for the multiple regression model.This regression…

Answered: Consider the following computer output…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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