Homework Help Question & Answers

# Waterbury Insurance Company wants to study the relationship between the amount of fire damage and the…

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 SS df MS F Regression 1,870.5782 1 1,870.5782 41.39 Residual 1,265.4934 28 45.1962 Total 3, 136. 0716 29 Regression output Variables Coefficients Intercept 13.7601 Distance-X 3.7708 Std. Error t(df=28) 3. 106 2.914 0.5861 6.43 Click here for the Excel Data File a-1. Write out the regression equation. (Round your answers to 3 decimal places.)

b. How much damage would you estimate for a fire 4 miles from the nearest fire station? (Round your answer to the nearest dollar amount.) Estimated damage

c-1. Determine and interpret the coefficient of determination. (Round your answer to 3 decimal places.) Coefficient of determination

c-2. Fill in the blank below. (Round your answer to one decimal place.) % of the variation in damage is explained by variation in distance.

d-1. Determine the correlation coefficient. (Round your answer to 3 decimal places.) Correlation coefficient

e-2. Compute the value of the test statistic. (Round your answer to 2 decimal places.) Value of the test statistic

Add a comment