TABLE 14-10
You Worked as an Intern at We

question 69

Short Answer

TABLE 14-10
You worked as an intern at We Always Win Car Insurance Company last summer. You notice that individual car insurance premiums depend very much on the age of the individual, the number of traffic tickets received by the individual, and the population density of the city in which the individual lives. You performed a regression analysis in EXCEL and obtained the following information:
Regression Analysis
$\begin{array}{lr}\hline\text {Regression Statistics } \\\hline\text { Multiple R} & 0.63 \\\text {R Square }& 0.40 \\\text {Adjusted R Square} & 0.23 \\\text {Standard Error }& 50.00 \\\text {Observations} & 15.00 \\\hline\end{array}$

ANOVA
$\begin{array}{lccccc}\hline & \text { d f} & \text {SS} & \text {MS} & \text {F } & \text {Significance F } \\\hline \text {Regression} & 3 & & 5994.24 & 2.40 & 0.12 \\\text {Residual }& 11 & 27496.82 & & & \\\text {Total }& 45479.54 & & & \\\hline\end{array}$

$\begin{array}{lccrrrr}\hline & \text {oefficients}&\text { Standard Error }& \text { t Stat} &\text { p-value }& \text {Lower 99.0\% }& \text {Upper 99.0 \% } \\\hline\text { Intercept} & 123.80 & 48.71 & 2.54 & 0.03 & -27.47 & 275.07 \\\text {AGE }& -0.82 & 0.87 & -0.95 & 0.36 & -3.51 & 1.87 \\\text {TICKETS}& 21.25 & 10.66 & 1.99 & 0.07 & -11.86 & 54.37 \\\text {DENSITY} & -3.14 & 6.46 & -0.49 & 0.64 & -23.19 & 16.91 \\\hline\end{array}$

-Referring to Table 14-10, the estimated average change in insurance premiums for every 10 additional tickets received is ______ .

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Definitions:

Net Exports

The value of a country's total exports minus its total imports, representing the external demand for a nation’s goods and services.

Positive Entry

The introduction of new firms into a market in response to observed profits, leading to increased competition.

Goods Imports

The action or process of bringing goods and services from foreign countries into a domestic market for consumption or use.

Exports of Services

Economic transactions where domestic service providers offer their services to entities in foreign countries.