Test whether increased speed is linked with the claim cost.

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
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Chapter1: Starting With Matlab
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A study investigated the link between speed of an automobile at the time of a crash, and the cost of the insurance claim. Below is the residual plot and the output from Excel.


SUMMARY OUTPUT

Regression Statistics
Multiple R 0.17652
R Square 0.03116
Adjusted R Square 0.03116
Standard Error 0.42014
Observations 225


ANOVA

  df SS MS F Significance F
Regression 1 1.266 1.266 7.1717 0.00795
Residual 223 39.363 0.1765
Total 224 40.629



  Coefficients Standard Error t-Stat P-value Lower 95% Upper 95%
Intercept 0.843 2.2068 0.382 0.703 -3.5066 5.1926
X Variable 1 0.003807 0.001422 2.678 0.00795 0.001 0.0066


Are there any assumptions for regression that you feel ought to be examined?

The residuals to do not average zero since the middle is about 50Normality because there are a lot of outliers on the low end    Linearity because of the rainbow type curveIndependence because there are more high speed crashes than low speed crashesConstant Variance because some residuals are high while others are low



Test whether increased speed is linked with the claim cost. 

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