Last summer you had a job at the Barbie Insurance Company. You noticed that people's car insurance premiums depend on the person's age and the number of traffic tickets received over the previous 5 years. You collected some data and performed a regression analysis in EXCEL: SUMMARY OUTPUT Regression Statistics egin{tabular}{|l|l|} hline Multiple R & 0.8546 \ hline R Square & 0.7303 \ hline Adjusted R Square & 0.6853 \ hline Standard Error & 226.7502 \ hline Observations & 15 \ hline end{tabular} egin{tabular}{|l|l|c|c|c|} hline & Coeff & Std Error & T Stat & P-value \ hline Intercept & 821.2617 & 161.9391 & 5.0714 & 0.0003 \ hline Age & -1.4061 & 2.5988 & -0.5411 & 0.5984 \ hline Tickets & 243.4401 & 43.2470 & 5.6291 & 0.0001 \ hline end{tabular} What is the proportion of the total variability in insurance premiums that can be explained by AGE and TICKETS?
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The proportion of the total variability in insurance premiums that can be explained by AGE and TICKETS is given by the R Square value in the regression analysis. Show more…
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You worked as an intern at We Always Win Car Insurance Company last summer. You notice that individual car insurance premiums depend very much on the age of the individual and the number of traffic tickets received by the individual. You performed a regression analysis in EXCEL and obtained the following partial information: Regression Statistics Multiple R 0.8546 R Square 0.7303 Adjusted R Square 0.6853 Standard Error 226.7502 Observations 15 ANOVA df SS MS F Significance F Regression 2 835284.6500 16.2457 0.0004 Residual 12 616987.8200 Total 2287557.1200 Coefficients Standard Error t Stat P-value Lower 99% Upper 99% Intercept 821.2617 161.9391 5.0714 0.0003 326.6124 1315.9111 Age -1.4061 2.5988 -0.5411 0.5984 -9.3444 6.5321 Tickets 243.4401 43.2470 5.6291 0.0001 111.3406 375.5396
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You worked as an intern at We Always Win Car Insurance Company last summer. You notice that individual car insurance premiums depend very much on the age of the individual and the number of traffic tickets received by the individual. You performed a regression analysis in Excel and obtained the following partial information: Referring to the above output, the proportion of variation in insurance premiums that can be explained by AGE and TICKETS is
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You worked as an intern at We Always Win Car Insurance Company last summer. You notice that individual car insurance premiums depend very much on the age of the individual and the number of traffic tickets received by the individual. You performed a regression analysis in EXCEL and obtained the following partial information: The estimated mean change in insurance premiums for every 2 additional tickets received is ________.
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