A car insurance company would like to examine the relationship between the driving experience and insurance premium. For this reason, a random sample of ten drivers is taken and the years of driving experience (x) as well as the monthly insurance premium (y in $) is recorded.The data are shown in the table below. The summary statistics for these data are: Draw a scatter diagram of these data on the graph paper. Label the diagram carefully.Calculate the sample correlation coefficient (using the formula for correlation coefficient). Interpret your findingsiii. Calculate the least squares line of y on x and draw the line on the scatter diagram (y=a+bx1)Interpret the intercept and slope (b/coefficient of x variable).iv. Based on the regression equation in part (iii), what will be the predicted monthly insurance premium for a driver with 12 years of experience? Will you trust this value? Justify your answer. Sum of x data : 127Sum of the squares of x data : 2033Sum of the squares of y dataSum of y data : 562:33662Sum of products of x and y data:6402 Driver2345678910Drivingexperience(x)6.1110156.25161520Insurance66 88 5170445642604540premium (y)

Name: A car insurance company would like to examine the relationship between
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Description: A car insurance company would like to examine the relationship between the driving experience and insurance premium. For this reason, a random sample of ten drivers is taken and the years of driving experience (x) as well as the monthly insurance pre

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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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A car insurance company would like to examine the relationship between the driving experience and insurance premium. For this reason, a random sample of ten drivers is taken and the years of driving experience (x) as well as the monthly insurance premium (y in $) is recorded.

The data are shown in the table below.

The summary statistics for these data are:

Draw a scatter diagram of these data on the graph paper. Label the diagram carefully.
Calculate the sample correlation coefficient (using the formula for correlation coefficient). Interpret your findings

iii. Calculate the least squares line of y on x and draw the line on the scatter diagram (y=a+bx₁)

Interpret the intercept and slope (b/coefficient of x variable).

iv. Based on the regression equation in part (iii), what will be the predicted monthly insurance premium for a driver with 12 years of experience? Will you trust this value? Justify your answer.

Sum of x data : 127
Sum of the squares of x data : 2033
Sum of the squares of y data
Sum of y data : 562
:33662
Sum of products of x and y data:
6402

Driver
2
3
4
5
6
7
8
9
10
Driving
experience(x)
6.
11
10
15
6.
25
16
15
20
Insurance
66 88 51
70
44
56
42
60
45
40
premium (y)

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