SCENARIO 13-10
You Worked as an Intern at We Always

question 124

Multiple Choice

SCENARIO 13-10
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 and the number of traffic tickets received by the individual.You performed a regression analysis in EXCEL and obtained the following partial information: $$\begin{array}{l}\begin{array} { l r } \hline { \text { Regression Statistics } } \\\hline \text { Multiple R } & 0.8546 \\\text { R Square } & 0.7303 \\\text { Adjusted R Square } & 0.6853 \\\text { Standard Error } & 226.7502 \\\text { Observations } & 15 \\\hline\end{array}\\\\\text { ANOVA }\\\begin{array}{lrrrrrr} & d f & & \text { SS } & \text { MS } & \text { F } & \text { Significance } F \\\hline \text { Regression } & & 2 & & \text { 835284.6500 } & 16.2457 & 0.0004 \\\text { Residual } & & 12 & 616987.8200 & & & \\\text { Total } & & & 2287557.1200 & & & \\\hline\end{array}\\\\\begin{array} { l r r r r r r } \hline & \text { Coefficients } & \text { Standard Error } & { t \text { Stat } } & \text { P-value } & \text { Lower 99\% } & { \text { Upper 99\% } } \\\hline \text { Intercept } & 821.2617 & 161.9391 & 5.0714 & 0.0003 & 326.6124 & 1315.9111 \\\text { Age } & - 1.4061 & 2.5988 & - 0.5411 & 0.5984 & - 9.3444 & 6.5321 \\\text { Tickets } & 243.4401 & 43.2470 & 5.6291 & 0.0001 & 111.3406 & 375.5396 \\\hline\end{array}\end{array}$$
-Referring to SCENARIO 13-10, to test the significance of the multiple regression model, what is the form of the null hypothesis?

• A)\(H _ { 0 } : \beta _ { 1 } = 0\)
• B)\(H _ { 0 } : \beta _ { 2 } = 0\)
• C)\(H _ { 0 } : \beta _ { 1 } = \beta _ { 2 } = 0\)
• D)\(H _ { 0 } : \beta _ { 0 } = \beta _ { 1 } = \beta _ { 2 } = 0\)

---

Definitions:

Vector Organisms

Living organisms such as mosquitoes, ticks, and fleas that can transmit infectious pathogens between humans, or from animals to humans.

Climate Change

A long-term change in the Earth's climate, especially a change due to an increase in the average atmospheric temperature.

Increases

The action or process of becoming greater in size, number, value, or amount.

Social Construction

The theory that much of what is perceived as reality is shaped by the shared beliefs and attitudes of a society.