Dependent Variable: Y $1000 fire damage &n...
Dependent Variable: Y $1000 fire damage
Analysis of Variance
Sum of Mean
Source DF Squares Square F Value Pro
Model 1 841.76636 841.76636 156.886 0.0001
Error 13 69.75098 5.36546
Total(Adjusted) 14 911.51733
Root MSE 2.31635 R-square 0.9235
Dep Mean 26.41333 Adj R-sq 0.9176
C.V. 8.76961
Parameter Estimates
Parameter Standard T for H0:
Variable Estimate Error Parameter=0 Prob > |T|
INTERCEPT 10.277929 1.42027781 7.237 0.0001
X 4.919331 0.39274775 12.525 0.0001
Dep Actual Predicted 95% LCL 95% UCL 95% LCL 95%
Obs Y Value Mean Mean Individual Individual
16 . 27.4956 26.1901 28.8011 22.3239 32.66
Dependent Variable: Y $1000 fire damage
Analysis of Variance
Sum of Mean
Source DF Squares Square F Value Pro
Model 1 841.76636 841.76636 156.886 0.0001
Error 13 69.75098 5.36546
Total(Adjusted) 14 911.51733
Root MSE 2.31635 R-square 0.9235
Dep Mean 26.41333 Adj R-sq 0.9176
C.V. 8.76961
Parameter Estimates
Parameter Standard T for H0:
Variable Estimate Error Parameter=0 Prob > |T|
INTERCEPT 10.277929 1.42027781 7.237 0.0001
X 4.919331 0.39274775 12.525 0.0001
Dep Actual Predicted 95% LCL 95% UCL 95% LCL 95%
Obs Y Value Mean Mean Individual Individual
16 . 27.4956 26.1901 28.8011 22.3239 32.66
Dependent Variable: Y $1000 fire damage
Analysis of Variance
Sum of Mean
Source DF Squares Square F Value Pro
Model 1 841.76636 841.76636 156.886 0.0001
Error 13 69.75098 5.36546
Total(Adjusted) 14 911.51733
Root MSE 2.31635 R-square 0.9235
Dep Mean 26.41333 Adj R-sq 0.9176
C.V. 8.76961
Parameter Estimates
Parameter Standard T for H0:
Variable Estimate Error Parameter=0 Prob > |T|
INTERCEPT 10.277929 1.42027781 7.237 0.0001
X 4.919331 0.39274775 12.525 0.0001
Dep Actual Predicted 95% LCL 95% UCL 95% LCL 95%
Obs Y Value Mean Mean Individual Individual
16 . 27.4956 26.1901 28.8011 22.3239 32.66
A fire insurance company wants to relate the amount of fire damage (y) in major residential fires to the distance between residence and the nearest fire station (x). The study is to be conducted in a large suburb of a major city, a sample of 15 recent fires in this suburb is selected.
1. You will find the value 4.919331 in the output under parameter estimates. This is interpreted as:
a. Mean fire damage will increase $4,919.33 for each mile from the fire station
b. Mean fire damage will be estimated to increase $4,919.33 for each mile from the fire station
c. The fire station will increase $4, 919.33 for each mile from the station
d. The mean fire damage will be $4,919.33 given the distance
Homework Answers
Answer 1
4.919331 is the slope coefficient of x or independent variable which is defined as distance between residence and the nearest fire station in this case.
The slope is positive which means that it will increase the dependent variable by 4.919331 units.
So, for every one mile distance, the amount of fire damage will increase by $4.919.33
option A is correct
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subjected to four different tests in sequential order. An
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