THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 126

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 enough evidence at the 10% significance level to infer that the model is useful in predicting how long an individual will live?

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Definitions:

Public-Sector Managers

Individuals who oversee and lead government agencies, departments, or publicly owned corporations, ensuring the delivery of public services efficiently and effectively.

Bankruptcy

A legal process through which individuals or businesses unable to meet their financial obligations can seek relief from some or all of their debts.

Competition

The rivalry among businesses to sell their goods and services to consumers, driving innovation and keeping prices low.

Great Depression

A severe worldwide economic downturn that lasted throughout the 1930s, marked by widespread unemployment and poverty.