In the early 1900s, population, prices, wages, and individual life insurance policy face amounts were all incredibly low compared to their counterparts of today. The following data show the number of life insurance policies (millions) and their total face amounts ($ millions) for five years selected from this long-ago era that was about to experience the Great Depression.
a. Determine the least-squares regression equation for predicting total value of individual life insurance on the basis of the number of individual life insurance policies in force. Interpret the slope of the equation.
b. Determine and interpret the coefficients of correlation and determination.
c. If there were 30 million individual life insurance policies in force during a given year, what would be the prediction for the total face value of these policies?

  • CreatedSeptember 08, 2015
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