Instruction 13-8
You Worked as an Intern at We Always

question 247

True/False

Instruction 13-8
You worked as an intern at We Always Win Car Insurance Company last summer.You notice that individual car insurance premium depends very much on the age of the individual,the number of traffic tickets received by the individual,and the population density of the city in which the individual lives.You performed a regression analysis in Microsoft Excel and obtained the following information:
$\begin{array}{l}\text { Regression Analysis }\\\begin{array}{lr}\hline {\text { Regression Statistics }} \\\hline \text { Multiple R } & 0.63 \\\text { R Square } & 0.40 \\\text { Adjusted R Square } & 0.23 \\\text { Standard Error } & 50.00 \\\text { Observations } & 15.00\end{array}\end{array}$
ANOVA
$\begin{array}{lrrrrrr} & d f & & S S & M S & F & \text { Significance } F \\\hline \text { Regression } & 3 & & 5994.24 & 2.40 & 0.12 \\\text { Residual } & 11 & 27496.82 & & & \\\text { Total } & & 45479.54 & & &\end{array}$

$\begin{array}{lrrrrrrr} & \text { Coefficients } & \text { Standard } & t \text { Stat } & \text { P-value } & \text { Lower 99.0\% } & \text { Upper 99.0\% } \\\hline \text { Intercept } & {\text { Error }} & & & & & \\\text { AGE } & 123.80 & 48.71 & 2.54 & 0.03 & -27.47 & 275.07 \\\text { TICKETS } & -0.82 & 0.87 & -0.95 & 0.36 & -3.51 & 1.87 \\\text { DENSITY } & 21.25 & 10.66 & 1.99 & 0.07 & -11.86 & 54.37 \\& -3.14 & 6.46 & -0.49 & 0.64 & -23.19 & 16.91\end{array}$
-Referring to Instruction 13-8,the F test for the significance of the entire regression performed at a level of significance of 0.01 leads to a rejection of the null hypothesis.

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Definitions:

Blood

A vital fluid in humans and animals that delivers necessary substances such as nutrients and oxygen to the cells and transports metabolic waste products away.

Placenta

An organ that develops in the uterus during pregnancy, providing oxygen and nutrients to growing babies while removing waste products from the baby’s blood.

Chorion

A membrane that surrounds the amnion and becomes the fetal component of the placenta.

Epigenesis

The process by which a new phenotypic form emerges through the interactions of the preceding form and its current environment.