Health insurance companies are generally faced with the problem of how much premium to charge the customers. Generally, the premium charged by the company (P, measured in hundred dollars) is decided on the basis of the age of the person (A) and the duration for which the insurance is taken (D). A health insurancecompany collects data on 350 randomly selected customers. The estimated regression function is:P₁ = 380.36+0.84 A +2.78 D +0.64 AxD, R² = 0.546.(1.12) (1.08) (1.14) (1.94)The standard errors are given in parentheses.The change in the premium due to an increase in the age of a person by 1 year, holding the duration of insurance constant at 3 years, will be $The change in the premium due to an increase in duration of the insurance by 1 year, holding the age of the person constant at 50 years, will be $(Express your answers in dollars.)Suppose the age of a person is 50 years and the duration for which he purchases the insurance is 3 years.If both the age of the person and the duration of insurance increase by 1 year, the change in the premium will be $(Express your answer in dollars.)

Answered: Health insurance companies are…

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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The data show the chest size and weight of several bears. Find the regression equation, letting chest size be the independent (x) variable. Then find the best predicted weight of a bear with a chest size of 58 inches. Is the result close to the actual weight of 572 pounds? Use a significance level of 0.05. Chest size (inches) 46 57 53 41 40 40 Weight (pounds) 384 580 542 358 306 320 LOADING... Click the icon to view the critical values of the Pearson correlation coefficient r. What is the regression equation? y=nothing+nothingx (Round to one decimal place as needed.)
The datasetBody.xlsgives the percent of weight made up of body fat for 100 men as well as other variables such as Age, Weight (lb), Height (in), and circumference (cm) measurements for the Neck, Chest, Abdomen, Ankle, Biceps, and Wrist. We are interested in predicting body fat based on abdomen circumference. Find the equation of the regression line relating to body fat and abdomen circumference. Make a scatter-plot with a regression line. What body fat percent does the line predict for a person with an abdomen circumference of 110 cm? One of the men in the study had an abdomen circumference of 92.4 cm and a body fat of 22.5 percent. Find the residual that corresponds to this observation. Bodyfat Abdomen 32.3 115.6 22.5 92.4 22 86 12.3 85.2 20.5 95.6 22.6 100 28.7 103.1 21.3 89.6 29.9 110.3 21.3 100.5 29.9 100.5 20.4 98.9 16.9 90.3 14.7 83.3 10.8 73.7 26.7 94.9 11.3 86.7 18.1 87.5 8.8 82.8 11.8 83.3 11 83.6 14.9 87 31.9 108.5 17.3…
The following data show the brand, price ($), and the overall score for six stereo headphones that were tested by a certain magazine. The overall score is based on sound quality and effectiveness of ambient noise reduction. Scores range from 0 (lowest) to 100 (highest). The estimated regression equation for these data is ý = 22.525 + 0.325x, where x = price ($) and y overall score. %3D Brand Price ($) Score 180 78 B. 150 71 C 95 59 70 54 E 70 40 35 28 (a) Compute SST, SSR, and SSE. (Round your answers to three decimal places.) SST SSR %3D SSE = (b) Compute the coefficient of determination . (Round your answer to three decimal places.) 1 = Comment on the goodness of fit. (For purposes of this exercise, consider a proportion large if it is at least 0.55.) O The least squares line provided a good fit as a large proportion of the variability in y has been explained by the least squares line. O The least squares line did not provide a good fit as a large proportion of the variability in y…
The table shows the average weekly wages (in dollars) for state government employees and federal government employees for 8 years. The equation of the regression line is y = 1.405x – 12.307. Complete parts (a) and (b) below. Average Weekly Wages (state), x Average Weekly Wages (federal), y 751 760 791 817 835 881 924 951 1002 1047 1115 1149 1195 1250 1269 1300 (a) Find the coefficient of determination and interpret the result. 12 =O
An instructor asked a random sample of eight students to record their study times at the beginning of a course. She then made a table for total hours studied (x) over 2 weeks and test score (y) at the end of the 2 weeks. The table is given below. Complete parts (a) through (f). x 10 13 10 18 6 15 16 21 y 93 79 81 74 85 81 85 80 a. Find the regression equation for the data points. b. Graph the regresson equation c. Describe the apparent relationship between the two variables. d. Identify the predictor and response variables. e. Identify outliers and potential influential observations. f.Predict the score for a student that studies for 17 hours.
The following data show the brand, price ($), and the overall score for six stereo headphones that were tested by a certain magazine. The overall score is based on sound quality and effectiveness of ambient noise reduction. Scores range from 0 (lowest) to 100 (highest). The estimated regression equation for these data is ŷ = 22.391 + 0.326x, where x = price ($) and y = overall score. Brand Price ($) Score A 180 76 B 150 71 C 95 63 D 70 56 E 70 40 F 35 24 #1) Compute SST, SSR, and SSE. (Round your answers to three decimal places.) SST = SSR = SSE = #2) Compute the coefficient of determination r2.(Round your answer to three decimal places.) r2 = #2a) Comment on the goodness of fit. (For purposes of this exercise, consider a proportion large if it is at least 0.55.) A) The least squares line provided a good fit as a small proportion of the variability in y has been explained by the least squares line. B) The least squares line provided a good fit as a large…
In simple linear regression, the coefficient of determination measures: a.The amount of variability of the y variable that is explained by the x variable b.The amount of variability of the x variable that is explained by the y variable c.The amount of variability between the treatments d.The amount of variability within the treatments
The City of Bellmore’s police chief believes that maintenance costs on high-mileage police vehicles are much higher than those costs for low-mileage vehicles. If high-mileage vehicles are costing too much, it may be more economical to purchase more vehicles. An analyst in the department regresses yearly maintenance costs (Y) for a sample of 200 police vehicles on each vehicle’s total mileage for the year (X). The regression equation finds: Y = $50 + .030X with a r2 of .90 What is the IV? What is the DV? If the mileage increases by one mile, what is the predicted increase in maintenance costs? If a vehicle’s mileage for the year is 50,000, what is its predicted maintenance costs? What does an r2 of .90 tell us? Is this a strong or weak correlation? How can you tell?
In multiple regression, when all independent variables are considered but the order in which they are added to the model is determined by the amount it contributes to the dependent variable, it is called: a.Two step b.Stepwise c.Simultaneous d.Backward step
The sales of a company (in million dollars) for each year shown in the table below (25)X(year) 2005 2006 2007 2008 2009Y (sales) 12 19 39 37 45a. Find the regression line of the data. Draw the inference about the dataset.b. Use the regression line as a model to estimate the sales of the company in 2012.
The following data show the brand, price ($), and the overall score for six stereo headphones that were tested by a certain magazine. The overall score is based on sound quality and effectiveness of ambient noise reduction. Scores range from 0 (lowest) to 100 (highest). The estimated regression equation for these data is ŷ = 21.592 + 0.324x, where x = price ($) and y = overall score. Brand Price ($) Score A 180 76 B 150 69 C 95 61 D 70 56 E 70 38 F 35 24 (a) Compute SST, SSR, and SSE. (Round your answers to three decimal places.) (b) Compute the coefficient of determination r2. (Round your answer to three decimal places.) (c) What is the value of the sample correlation coefficient? (Round your answer to three decimal places.)
The table below shows the average weekly wages (in dollars) for state government employees and federal government employees for 10 years. Construct and interpret a 95% prediction interval for the average weekly wages of federal government employees when the average weekly wages of state government employees is $895. The equation of the regression line is y = 1.454x- 36.984. Wages (state), x Wages (federal), y 712 778 789 801 843 878 927 937 939 958 1,014 1,054 1,116 1,146 1,191 1,248 1,270 1,302 1,335 1,401 Construct and interpret a 95% prediction interval for the average weekly wages of federal government employees when the average weekly wages of state government employees is $895. Select the correct choice below and fill in the answer boxes to complete your choice. (Round to the nearest cent as needed.) O A. We can be 95% confident that when the average weekly wages of state government employees is $895, the average weekly wages of federal government employees will be between $ and…

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