Life Expectancy an Actuary Wanted to Develop a Model to Predict

question 118

Essay

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 (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 y = 55.8 + 1.79x₁− 0.021x₂− 0.061x₃ ​ S = 9.47 ​ R−Sq = 22.5% ANALYSIS OF VARIANCE ​ ​
-{Life Expectancy Narrative} Interpret the coefficient b₂.

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenues, indicating the company's actual profit.

IFRS

Worldwide, the International Financial Reporting Standards serve as the accounting framework for drafting financial statements.

Single-Step Approach

A simple method of presenting an income statement where all revenues are summed in a single step before subtracting all expenses to find the net income.

Multiple-Step Approach

An income statement preparation method that highlights several steps or stages in determining net income, including operating and non-operating sections.