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An Actuary Wanted to Develop a Model to Predict How x1x _ { 1 }

question 19

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An actuary wanted to develop a model to predict how long individuals will live. After consulting a number of physicians, she collected the age at death (y), the average number of hours of exercise per week ( x1x _ { 1 } ), the cholesterol level ( x2x _ { 2 } ), and the number of points by which the individual's blood pressure exceeded the recommended value ( x3x _ { 3 } ). A random sample of 40 individuals was selected. The computer output of the multiple regression model is shown below:
THE REGRESSION EQUATION IS
ŷ = 55.8+1.79x10.021x20.016x355.8 + 1.79 x _ { 1 } - 0.021 x _ { 2 } - 0.016 x _ { 3 }  Predictor  Coef  StDev T Constant 55.811.84.729x11.790.444.068x20.0210.0111.909x30.0160.0141.143\begin{array} { | c | c c c | } \hline \text { Predictor } & \text { Coef } & \text { StDev } & \mathrm { T } \\\hline \text { Constant } & 55.8 & 11.8 & 4.729 \\x _ { 1 } & 1.79 & 0.44 & 4.068 \\x _ { 2 } & - 0.021 & 0.011 & - 1.909 \\x _ { 3 } & - 0.016 & 0.014 & - 1.143 \\\hline\end{array} se = 9.47 R2 = 22.5%.  ANALYSIS OF VARIANCE  Source of Variation df SS  MS  F  Regression 39363123.477 Error 36323089.722 Total 394166\begin{array}{l}\text { ANALYSIS OF VARIANCE }\\\begin{array} { | l | c c c c | } \hline \text { Source of Variation } & \mathrm { df } & \text { SS } & \text { MS } & \text { F } \\\hline \text { Regression } & 3 & 936 & 312 & 3.477 \\\text { Error } & 36 & 3230 & 89.722 & \\\hline \text { Total } & 39 & 4166 & & \\\hline\end{array}\end{array} Is there enough evidence at the 5% significance level to infer that the cholesterol level and the age at death are negatively linearly related?


Definitions:

Lump Sum Payment

A single payment made at a particular time, as opposed to a series of payments made over time.

Leisure

Free time available to an individual excluding time spent on work, essential activities, or commitments.

Bushel

A volume measure used in agriculture, particularly in the United States, equivalent to 8 dry gallons or about 35.24 liters.

Consumption

The use of goods and services by households or individuals for personal needs or to satisfy their utility.

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