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Life Expectancy an Actuary Wanted to Develop a Model to Predict

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Life Expectancy 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 ( x 1), the cholesterol level ( x 2), and the number of points that the individual's blood pressure exceeded the recommended value ( x 3). A random sample of 40 individuals was selected. The computer output of the multiple regression model is shown below. THE REGRESSION EQUATION IS y = 55.8 + 1.79 x 1 - 0.021 x 2 - 0.061 x 3 Life Expectancy 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 ( x <sub>1</sub>), the cholesterol level ( x <sub>2</sub>), and the number of points that the individual's blood pressure exceeded the recommended value ( x <sub>3</sub>). A random sample of 40 individuals was selected. The computer output of the multiple regression model is shown below. THE REGRESSION EQUATION IS y = 55.8 + 1.79 x <sub>1</sub> - 0.021 x <sub>2</sub> - 0.061 x <sub>3</sub>     S = 9.47 R - Sq = 22.5%   ANALYSIS OF VARIANCE   {Life Expectancy Narrative} Interpret the coefficient b <sub>2</sub>.
S = 9.47 R - Sq = 22.5%
ANALYSIS OF VARIANCE Life Expectancy 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 ( x <sub>1</sub>), the cholesterol level ( x <sub>2</sub>), and the number of points that the individual's blood pressure exceeded the recommended value ( x <sub>3</sub>). A random sample of 40 individuals was selected. The computer output of the multiple regression model is shown below. THE REGRESSION EQUATION IS y = 55.8 + 1.79 x <sub>1</sub> - 0.021 x <sub>2</sub> - 0.061 x <sub>3</sub>     S = 9.47 R - Sq = 22.5%   ANALYSIS OF VARIANCE   {Life Expectancy Narrative} Interpret the coefficient b <sub>2</sub>. {Life Expectancy Narrative} Interpret the coefficient b 2.


Definitions:

Futures Contract

A Futures Contract is a legal agreement to buy or sell a particular commodity or financial asset at a predetermined price at a specified time in the future.

Delivery Date

In finance, specifically with futures contracts, it is the date on which the underlying asset must be delivered or received under the terms of the contract.

Bond Market Indexes

Benchmarks that aggregate and measure the performance of bonds and fixed-income securities in a specific market segment or sector.

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