An insurance firm wanted to find the effect of driving experience and number of driving violations on
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Question:
Monthly Premium (GHS)
Driving experience (Years)
Number of driving violations (past 5 years)
Gender
58
14
1
Female
60
13
3
Male
35
19
0
Male
46
9
1
Female
99
3
5
Female
43
16
1
Male
57
11
3
Female
74
5
2
Male
38
14
0
Female
50
6
1
Female
63
10
3
Male
97
4
6
Male
55
8
2
Female
73
5
8
Female
80
9
8
Male
Using R (or any other statistical software package),
a. Find the regression of monthly motor insurance premium on the years of driving experience, the number of driving violations, and the gender of drivers. 5 MARKS
Using the output obtained to answer the following questions:
b. Write the estimated multiple regression 2 MARKS
c. Explain the meaning of the estimated regression coefficient of the independent variable gender 2 MARKS
d. What are the values of the standard deviations of errors, the coefficient of multiple determination, and the adjusted coefficient of multiple determination? 6 MARKS
e. What is the predicted motor insurance premium paid per month by a male driver with 10 years of driving experience and 2 driving violations? 3 MARKS
f. What is the predicted motor insurance premium paid per month by a female driver with 10 years of driving experience and 2 driving violations? 3 MARKS
g. Construct a 99% confidence interval for the coefficient of gender 6 MARKS
h. Using the 1% significance level, can you conclude that the coefficient of gender is different
Related Book For
Business Statistics a decision making approach
ISBN: 978-0133021844
9th edition
Authors: David F. Groebner, Patrick W. Shannon, Phillip C. Fry
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