Homework Help is Here – Start Your Trial Now!
Math
Statistics
While attempting to measure its risk exposure for the upcoming year, an insurance company notices a trend between the age of a customer and the number of claims per year. It appears that the number of claims keep going up as customers age. After performing a regression, they find that the relationship is (claims per year) = 0.385*(age) + 5.218. If a customer is 44.315 years old and they make an average of 11.239 claims per year, the residual is -11.04. Interpret this residual in terms of the problem.   Question 10 options:   1)  The number of claims per year is 11.04 claims less than what we would expect.   2)  The age is 11.04 years larger than what we would expect.   3)  The age is 11.04 years less than what we would expect.   4)  The number of claims per year is 11.239 claims less than what we would expect.   5)  The number of claims per year is 11.04 claims greater than what we would expect.

While attempting to measure its risk exposure for the upcoming year, an insurance company notices a trend between the age of a customer and the number of claims per year. It appears that the number of claims keep going up as customers age. After performing a regression, they find that the relationship is (claims per year) = 0.385*(age) + 5.218. If a customer is 44.315 years old and they make an average of 11.239 claims per year, the residual is -11.04. Interpret this residual in terms of the problem.   Question 10 options:   1)  The number of claims per year is 11.04 claims less than what we would expect.   2)  The age is 11.04 years larger than what we would expect.   3)  The age is 11.04 years less than what we would expect.   4)  The number of claims per year is 11.239 claims less than what we would expect.   5)  The number of claims per year is 11.04 claims greater than what we would expect.

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
See similar textbooks
icon
Related questions
Question
While attempting to measure its risk exposure for the upcoming year, an insurance company notices a trend between the age of a customer and the number of claims per year. It appears that the number of claims keep going up as customers age. After performing a regression, they find that the relationship is (claims per year) = 0.385*(age) + 5.218. If a customer is 44.315 years old and they make an average of 11.239 claims per year, the residual is -11.04. Interpret this residual in terms of the problem.
 

Question 10 options:

 

1) 

 The number of claims per year is 11.04 claims less than what we would expect.
 

2) 

 The age is 11.04 years larger than what we would expect.
 

3) 

 The age is 11.04 years less than what we would expect.
 

4) 

 The number of claims per year is 11.239 claims less than what we would expect.
 

5) 

 The number of claims per year is 11.04 claims greater than what we would expect.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman
SEE MORE TEXTBOOKS