Life Expectancy Narrative An Actuary Wanted to Develop a Model to Predict How

question 77

Essay

Life Expectancy Narrative
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 ( ), the cholesterol level ( ), and the number of points that the individual's blood pressure exceeded the recommended value ( ). A random sample of 40 individuals was selected. The computer output of the multiple regression model is shown below.
The regression equation is S = 9.47 R-Sq = 22.5%
Analysis of Variance
-Refer to 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? Justify your conclusion.

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Definitions:

Straight-line Method

A method of calculating depreciation by evenly spreading the cost of an asset over its expected useful life.

Serial Bond

A type of bond that matures in installments over a period of time rather than having a single maturity date.

Principal

The initial amount of money borrowed or invested, excluding any interest or dividends.

Installments

Regular, often monthly, payments made towards settling a debt or purchasing a product over time.