SCENARIO 17-5
You Worked as an Intern at We Always

question 237

Short Answer

SCENARIO 17-5
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: $\begin{array}{l}\begin{array}{lr}\hline {\text { Regression Statistics }} \\\hline \text { Multiple R } & 0.63 \\\text { R Square } & 0.40 \\\text { Adjusted R Square } & 0.23 \\\text { Standard Error } & 50.00 \\\text { Observations } & 15.00 \\\hline\end{array}\\\\\text { ANOVA }\\\begin{array}{lrcccr}\hline & d f &{\text { SS }} & \text { MS } & \text { F }&{\text { Significance } F} \\\hline \text { Regression } & 3 & & 5994.24 & 2.40 & 0.12 \\\text { Residual } & 11 & 27496.82 & & & \\\text { Total } & & 45479.54 & & & \\\hline\end{array}\\\\\begin{array}{lrrrrrr}\hline & \text { Coefficients } & \begin{array}{c}\text { Standard } \\\text { Error }\end{array} & \text { t Stat } & \text { P-value } & \text { Lower 99.0\% } & \text { Upper 99.0\% } \\\hline \text { Intercept } & 123.80 & 48.71 & 2.54 & 0.03 & -27.47 & 275.07 \\\text { AGE } & -0.82 & 0.87 & -0.95 & 0.36 & -3.51 & 1.87 \\\text { TICKETS } & 21.25 & 10.66 & 1.99 & 0.07 & -11.86 & 54.37 \\\text { DENSITY } & -3.14 & 6.46 & -0.49 & 0.64 & -23.19 & 16.91 \\\hline\end{array}\end{array}$
AGE -0.82 0.87 -0.95 0.36 -3.51 1.87
TICKETS 21.25 10.66 1.99 0.07 -11.86 54.37
DENSITY -3.14 6.46 -0.49 0.64 -23.19 16.91
-Referring to Scenario 17-5, to test the significance of the multiple regression model, what is the form of the null hypothesis? a) $H _ { 0 } : \beta _ { 0 }$
b) $H _ { 0 } : \beta _ { 1 }$
c) $H _ { 0 } : \beta _ { 1 } = \beta _ { 2 } = \beta _ { 3 }$
d) $H _ { 0 } : \beta _ { 0 } = \beta _ { 1 } = \beta _ { 2 } = \beta _ { 3 }$

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Definitions:

Major Archetypes

Fundamental, universal symbols or themes that recur across cultures and literature, often representing common aspects of human experience.

Persona

A social facade or mask that an individual presents to the outside world, as part of Jungian psychology, reflecting part of the unconscious personality.

Anima and Animus

Jungian concepts referring to the unconscious feminine side of a man (anima) and the unconscious masculine side of a woman (animus) that influence their behavior.

Ego

A component of the human psyche in psychoanalytic theory that mediates between the conscious, the unconscious, and the external world.