Homework Help is Here – Start Your Trial Now!
Math
Statistics
In a study of the demand for life insurance, Executive Insurers, Inc., is examining the factors that affect the amount of life insurance held by executives. The following data on the amount of insurance held by executives. The following data on the amount of insurance and annual incomes of a random sample of 12 executives were collected

In a study of the demand for life insurance, Executive Insurers, Inc., is examining the factors that affect the amount of life insurance held by executives. The following data on the amount of insurance held by executives. The following data on the amount of insurance and annual incomes of a random sample of 12 executives were collected

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter4: Equations Of Linear Functions
Section4.5: Correlation And Causation
Problem 24PFA
See similar textbooks
icon
Related questions
Topic Video
Question

In a study of the demand for life insurance, Executive Insurers, Inc., is examining the factors that affect the amount of life insurance held by executives. The following data on the amount of insurance held by executives. The following data on the amount of insurance and annual incomes of a random sample of 12 executives were collected

2. In a study of the demand for life insurance, Executive Insurers, Inc., is examining the factors that affect the amount of life insurance held by executives. The following data on the amount of insurance held by executives. The following data on the amount of insurance and annual incomes of a random sample of 12 executives were collected. Observation Amount of Life Insurance Annual Income {x$1,000) {x $1.000 50 180 84 225 74 210 115 150 104 150 56 135 102 150 104 10 150 108 11 65 12 58 a. Given the nature of the problem, which would be the dependent variable and which would be the independent variable? b. Plot the data c. Determine the estimated regression line. Give an economic interpretation of the slope (b) coefficient. d. Test the hypothesis that there is no relationship (i.e., B = 0) between the variables. e. Calculate the coefficient of determination. f. Perform an analysis of variance on the regression, including an F-test of the overall significance of the results. g. Determine the best estimate, based on the regression model, of the amount of life insurance held by an executive whose annual income is $80,000. Construct an approximate 95-percent prediction interval.
Transcribed Image Text:2. In a study of the demand for life insurance, Executive Insurers, Inc., is examining the factors that affect the amount of life insurance held by executives. The following data on the amount of insurance held by executives. The following data on the amount of insurance and annual incomes of a random sample of 12 executives were collected. Observation Amount of Life Insurance Annual Income {x$1,000) {x $1.000 50 180 84 225 74 210 115 150 104 150 56 135 102 150 104 10 150 108 11 65 12 58 a. Given the nature of the problem, which would be the dependent variable and which would be the independent variable? b. Plot the data c. Determine the estimated regression line. Give an economic interpretation of the slope (b) coefficient. d. Test the hypothesis that there is no relationship (i.e., B = 0) between the variables. e. Calculate the coefficient of determination. f. Perform an analysis of variance on the regression, including an F-test of the overall significance of the results. g. Determine the best estimate, based on the regression model, of the amount of life insurance held by an executive whose annual income is $80,000. Construct an approximate 95-percent prediction interval.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Data Collection, Sampling Methods, and Bias
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Glencoe Algebra 1, Student Edition, 9780079039897…
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill
Big Ideas Math A Bridge To Success Algebra 1: Stu…
Big Ideas Math A Bridge To Success Algebra 1: Stu…
Algebra
ISBN:
9781680331141
Author:
HOUGHTON MIFFLIN HARCOURT
Publisher:
Houghton Mifflin Harcourt
Holt Mcdougal Larson Pre-algebra: Student Edition…
Holt Mcdougal Larson Pre-algebra: Student Edition…
Algebra
ISBN:
9780547587776
Author:
HOLT MCDOUGAL
Publisher:
HOLT MCDOUGAL
SEE MORE TEXTBOOKS