Question

A)

While attempting to measure its risk exposure for the upcoming year, an insurance company notices a trend between the age of a customer and the number of claims per year. It appears that the number of claims keep going up as customers age. If 10 customers are sampled and the regression output is given below, what can we conclude about the slope of age?

t-ratio Predictor Constant age Coef 5.04 0.003 Stdev 2.2061 0.055 2.28 0.0517 0.9575 0.05 s = 1.549 R-sq = 0.048 R-sq (adj) = -12.46% Analysis of Variance SS MS 0.9575 SOURCE Regression Error Total ON 19.2 19.2

Question 11 options:

	1) The slope significantly differs from 0.
	2) The slope is 0.003 and therefore differs from 0.
	3) Since we are not given the dataset, we do not have enough information to determine if the slope differs from 0.
	4) The slope is equal to 0.
	5) Not enough evidence was found to conclude the slope differs significantly from 0.

B)

Cardiorespiratory fitness is widely recognized as a major component of overall physical well-being. Direct measurement of maximal oxygen uptake (VO2max) is the single best measure of such fitness, but direct measurement is time-consuming and expensive. It is therefore desirable to have a prediction equation for VO2max in terms of easily obtained quantities. A sample is taken and variables measured are age (years), time necessary to walk 1 mile (mins), and heart rate at the end of the walk (bpm) in addition to the VO2 max uptake. The following output is from a multiple regression. Based on the F-test alone, what is the correct conclusion about the regression slopes?

Question 12 options:

	1) All the regression slopes are equal to zero.
	2) We do not have the dataset, therefore, we are unable to make a conclusion about the slopes.
	3) We did not find significant evidence to conclude that at least one slope differs from zero.
	4) All the regression slopes do not equal zero.
	5) At least one of the regression slopes does not equal zero.

Answer 1

11)

since p value is not significant option 5 is correct

Not enough evidence was found to conclude the slope differs significantly from 0.

12)

option 3 is correct

We did not find significant evidence to conclude that at least one slope differs from zero.