THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 187

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 5% significance level to infer that the cholesterol level and the age at death show a negative linear relationship?

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Definitions:

Operating Cycle

The average period of time between the acquisition of materials or services and the final cash realization from those activities in a company.

Accounts Receivable Period

Accounts Receivable Period is the average number of days it takes for a company to collect payment from its customers after a sale has been made.

Cash Cycle

The period of time it takes for a business to convert its investments in inventory and other resources into cash flows from sales.

Inventory Turnover Rate

Inventory turnover rate measures how often a company sells and replaces its stock of goods during a certain period, indicating the efficiency of inventory management.