SCENARIO 14-10
You Worked as an Intern at We Always

question 204

Short Answer

SCENARIO 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 and the number of
traffic tickets received by the individual. You performed a regression analysis in EXCEL and
obtained the following partial information: $\begin{array}{l}\hline{ \text { Regression } \text { Statistics } } \\\hline \text { Multiple R } & 0.8546 \\\text { R Square } & 0.7303 \\\text { Adjusted R Square } & 0.6853 \\\text { Standard Error } & 226.7502 \\\text { Observations } & 15 \\\hline\end{array}$

$\text { ANOVA }$


$\begin{array} { l r r r r r r } \hline & \text { Coefficients } & \text { Standard Error } & { \text { tStat } } & \text { P-value } & \text { Lower 99\% } & \text { Upper 99\% } \\\hline \text { Intercept } & 821.2617 & 161.9391 & 5.0714 & 0.0003 & 326.6124 & 1315.9111 \\\text { Age } & - 1.4061 & 2.5988 & - 0.5411 & 0.5984 & - 9.3444 & 6.5321 \\\text { Tickets } & 243.4401 & 43.2470 & 5.6291 & 0.0001 & 111.3406 & 375.5396 \\\hline\end{array}$
-Referring to Scenario 14-10, 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) $H _ { 0 } : \beta _ { 0 } = \beta _ { 1 } = \beta _ { 2 } = 0$

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Definitions:

Hemopoietic Tissue

Blood-forming tissue.

Red Bone Marrow

A tissue found in the interior of bones, rich in blood vessels and stem cells, responsible for the production of blood cells.

Elastic Cartilage

A type of flexible cartilage found in areas like the ears and epiglottis, providing strength and elasticity.

External Ears

The outer parts of the ear, including the pinna and the ear canal, which collect sound waves and direct them inward.