Life Expectancy an Actuary Wanted to Develop a Model to Predict

question 7

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} Is there enough evidence at the 1% significance level to infer that the average number of hours of exercise per week and the age at death are linearly related?

Know how to report and interpret the results of a z-test.

Understand how to calculate and interpret critical values for hypothesis testing.

Grasp the variability metrics for individual scores and sample means.

Understand the factors contributing to job dissatisfaction.

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Definitions:

Economic Analysis

The systematic approach to determining the optimal use of scarce resources, examining the costs and benefits of economic decisions.

Product Promotion

Activities undertaken by a company to increase awareness, create interest, and generate sales or acceptance of its products or services.

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, leading to competition based on factors other than price.

Pure Competition

A market structure characterized by an extremely large number of sellers, none of which can significantly influence price or market conditions due to the homogeneity of the product being sold.