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 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.)

Answer 1

a-1. y = 13.760 +3.771 be for so Estimated Damage = 13.76 + 3•7184 X= 4 Estimated CD Coefficient of Damage 28.844 Determination, R. SSReguessions 10.596. SSToal R2 1870.5782 3136. 0716 C-2. 59.6% d the variation un variation un distance. damage is explained by d-le r = 0.372 icouvelation coefficient +0.596 (at is positive since slope = = 3-77] is posile ) e-2. Since previous paut e-l or d-2 is missing, I am not sure if Test - Statistics be for coroesponds F - Test (ANOVA) use 41.390 if it corresponds to A NOVA 2.914 if ùt corresponds to t-tut for intercepc 6.430 if uit corresponds to t-lüt for slopes being asked to og t-test use