An Insurance Company Wants to Know Whether the Subscribers to Its

question 49

Multiple Choice

An insurance company wants to know whether the subscribers to its HMO,PPO,or traditional single indemnity plan exhibit better health characteristics.They have the following data for each of their subscribers: % of body weight over optimum weight; blood pressure; cholesterol and hours per week of exercise.The analysis will group subscribers as either healthy,somewhat healthy or not healthy.Which of the following would be the best procedure for making such a determination?

• A)factor analysis
• B)multiple discriminant analysis
• C)multiple regression analysis
• D)cluster analysis

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