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

question 30

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 5% significance level to infer that the cholesterol level and the age at death are negatively linearly related? Justify your conclusion.

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Definitions:

Capital Gain/Loss

The profit or loss made from selling an asset for more or less than its purchase price.

Depreciates

The process by which an asset loses value over time, often due to wear and tear, age, or obsolescence, impacting its useful life.

Straight Line

A method of calculating depreciation of an asset which assumes equal annual depreciation over the asset's useful life.

Salvage Value

The estimated resale or scrap value of an asset at the end of its useful life.