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:

British Columbia

A province located on the west coast of Canada, known for its natural landscapes and as the third-most populous province in the country.

Provincial Court

is a low level court which deals with less serious criminal offenses, family law (except divorce), and civil cases of limited value, within a specific province or territory.

Alberta

A province in western Canada, known for its vast forests, prairies, and rich natural resources.

Judge-made Law

Refers to legal principles and rules that have been established by court decisions (common law) rather than by legislative enactment.