A Health Insurance Company Conducted a Linear Regression Analysis Between

question 9

Multiple Choice

A health insurance company conducted a linear regression analysis between the number of claims per customer (Y) and customer age (X) that resulted in the following equation analyzing customer risk: The above equation implies that an

• A) increase of one year in age is correlated with an increase of 5 claims.
• B) increase of one year in age is correlated with an increase of 1 claim.
• C) increase one year in age is correlated with an increase of 50.
• D) increase of one year in age is correlated with a decrease of 5 claims.

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Definitions:

Apartment Building

A residential structure consisting of multiple individual housing units, typically for rent, within one building or complex.

Rent Proceeds

The income received by a property owner from leasing their property to a tenant.

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A stance or perspective based on law regarding a particular issue or set of facts.

Assignment

The transfer of rights, property, or obligations from one party to another.