Waterbury Insurance Company wants to study the relationship between the amount o

Question

Waterbury Insurance Company wants to study the relationship between the amount of fire damage and the distance between the burning house and the nearest fire station. This information will be used in setting rates for insurance coverage. For a sample of 30 claims for the last year, the director of the actuarial department determined the distance from the fire station (x) and the amount of fire damage, in thousands of dollars (). The MegaStat output is reported below ANOVA table Source Regression Residual Total df MS 1,805.5782 1 1,805.5782 39.64 1,275.4934 28 3,081.0716 29 45.5533 Regression output Variables Intercept Distance-X Std. Errort(df-28) Coefficients 13.8134 3.0042 3.0963 7.164 3.475 6.3 Click here for the Excel Data File a-1. Write out the regression equation. (Round your answers to 3 decimal places.) a-2. Is there a direct or indirect relationship between the distance from the fire station and the amount of fire damage? The relationship between distance and damage is b. How much damage would you estimate for a fire 7 miles from the nearest fire station? (Round your answer to the nearest dollar amount.) Estimated damage

Explanation / Answer

Regression equation is

y=13.813+3.004(distance x)

since slope is positive

m=3.0042

relationship between damage and distance is positive.

solutionb:

for x=7 what is y value

y=13.813+3.004(7)

y=34.841

PLEASE PROVIDE DATA TO SOLVE REST OF QUESTION

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.