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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