Waterbury Insurance Company wants to study the relationship between the amount of fire damage and the distance between the burning house and the nearest fire station. This information will be used in setting rates for insurance coverage. For a sample of 30 claims for the last year, the director of the actuarial department determined the distance from the fire station (x) and the amount of fire damage, in thousands of dollars (y). The MegaStat output is reported below. ANOVA tableSourceSSdfMSFRegression1,850.578211,850.5782 39.69Residual1,305.49342846.6248 Total3,156.071629 Regression outputVariablesCoefficientsStd. Errort(df=28)Intercept12.68823.16992.82Distance–X5.1218.5046.3 Click here for the Excel Data File a-1. Write out the regression equation. (Round your answers to 3 decimal places.) a-2. Is there a direct or indirect relationship between the distance from the fire station and the amount of fire damage? How much damage would you estimate for a fire 5 miles from the nearest fire station? (Round your answer to the nearest dollar amount.)

Given, ANOVA table Source SS df MS F Regression 1,850.5782 1 1,850.5782 39.69…

Answered: Waterbury Insurance Company wants to…

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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Waterbury Insurance Company wants to study the relationship between the amount of fire damage and the distance between the burning house and the nearest fire station. This information will be used in setting rates for insurance coverage. For a sample of 30 claims for the last year, the director of the actuarial department determined the distance from the fire station (x) and the amount of fire damage, in thousands of dollars (y). The MegaStat output is reported below.

ANOVA table
Source	SS	df	MS	F
Regression	1,850.5782	1	1,850.5782		39.69
Residual	1,305.4934	28	46.6248
Total	3,156.0716	29

Regression output
Variables	Coefficients	Std. Error	t(df=28)
Intercept	12.6882	3.1699	2.82
Distance–X	5.121	8.504	6.3

Click here for the Excel Data File

a-1. Write out the regression equation. (Round your answers to 3 decimal places.)

a-2. Is there a direct or indirect relationship between the distance from the fire station and the amount of fire damage?

How much damage would you estimate for a fire 5 miles from the nearest fire station? (Round your answer to the nearest dollar amount.)

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