THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 144

Essay

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
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 (x₁),the cholesterol level (x₂),and the number of points that the individual's blood pressure exceeded the recommended value (x₃).A random sample of 40 individuals was selected.The computer output of the multiple regression model is shown below.
THE REGRESSION EQUATION IS:
= 55.8 + 1.79x₁ - 0.021x₂ - 0.016x₃

S = 9.47 R-Sq = 22.5%
ANALYSIS OF VARIANCE

-Is there sufficient evidence at the 5% significance level to infer that the number of points that the individual's blood pressure exceeded the recommended value and the age at death show a negative linear relationship?

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Definitions:

Decrease

A reduction in quantity, size, or intensity of a specific variable or condition, often used in economic contexts to describe trends in markets or metrics.

Budget Deficit

The financial situation where a government's expenditures exceed its revenues over a specified period, leading to borrowing or debt accumulation.

Investment

The allocation of resources, such as capital, time, or assets, to a project or asset with the expectation of generating future profits.

Households' Decision

The choices made by households regarding consumption, savings, and labor supply based on income, preferences, and economic conditions.