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:

Reputation

Reputation is the widespread belief or perception about an individual's or entity's character, qualities, or achievements, significantly influencing their social or professional standing.

Circumstances

The conditions or facts affecting a situation or event, often beyond one's control.

Best Alternative

The most acceptable option or course of action available to an individual or group, often considered in the absence of a preferred choice.

Negotiated Agreement

An arrangement or deal reached by two or more parties through the process of negotiation.