The monthly premium quoted by an insurance company for a critical illness policy was collected from a sample of 6 adult male smokers at different age. The data for the sample are shown: Age 28 25 50 39 47 31 Premium ($) 75 40 175 125 250 105 Using Age to predict premium, the Linear Regression equation is given by: ŷ =6.556X−112 and r2=0.813y^=6.556X−112 and r2=0.813 a. Identify the independent and Dependent variables. Dependent: Age Premium Independent: Age Premium b. Determine the slope. Slope = Slope = Round to 3 decimal places c. Determine |r||r| . |r|=|r|= Round to 3 decimal places d. Interpret rr : and e. Determine critical r value at 5% significance level and determine if there is a significant linear correlation exists. |r| critical=|r| critical= Round to 3 decimal places Linear Correlation:Linear Correlation: Significant Not Significant f. Predict the monthly premium for a 40 years old adult male smoker. Premium=Premium= Round to the nearest dollar
The monthly premium quoted by an insurance company for a critical illness policy was collected from a sample of 6 adult male smokers at different age. The data for the sample are shown: Age 28 25 50 39 47 31 Premium ($) 75 40 175 125 250 105 Using Age to predict premium, the Linear Regression equation is given by: ŷ =6.556X−112 and r2=0.813y^=6.556X−112 and r2=0.813 a. Identify the independent and Dependent variables. Dependent: Age Premium Independent: Age Premium b. Determine the slope. Slope = Slope = Round to 3 decimal places c. Determine |r||r| . |r|=|r|= Round to 3 decimal places d. Interpret rr : and e. Determine critical r value at 5% significance level and determine if there is a significant linear correlation exists. |r| critical=|r| critical= Round to 3 decimal places Linear Correlation:Linear Correlation: Significant Not Significant f. Predict the monthly premium for a 40 years old adult male smoker. Premium=Premium= Round to the nearest dollar
College Algebra
7th Edition
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter1: Equations And Graphs
Section: Chapter Questions
Problem 10T: Olympic Pole Vault The graph in Figure 7 indicates that in recent years the winning Olympic men’s...
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Question
The monthly premium quoted by an insurance company for a critical illness policy was collected from a sample of 6 adult male smokers at different age. The data for the sample are shown:
Age | 28 | 25 | 50 | 39 | 47 | 31 |
Premium ($) | 75 | 40 | 175 | 125 | 250 | 105 |
Using Age to predict premium, the Linear Regression equation is given by:
ŷ =6.556X−112 and r2=0.813y^=6.556X−112 and r2=0.813
a. Identify the independent and Dependent variables.
Dependent: |
Age
Premium
|
Independent: |
Age
Premium
|
b. Determine the slope.
Slope = Slope =
Round to 3 decimal places
c. Determine |r||r| .
|r|=|r|=
Round to 3 decimal places
d. Interpret rr :
and
e. Determine critical r value at 5% significance level and determine if there is a significant linear correlation exists.
|r| critical=|r| critical=
Round to 3 decimal places
Linear Correlation:Linear Correlation:
Significant
Not Significant
f. Predict the monthly premium for a 40 years old adult male smoker.
Premium=Premium=
Round to the nearest dollar
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