Question: A study by InsuranceQuotes.com found that homeowners with poor credit pay 91% more for home insurance than people with excellent credit. (a) A quote in

A study by InsuranceQuotes.com found that homeowners with poor credit pay 91% more for home insurance than people with excellent credit.
(a) A quote in the article stated, "Insurers have found a direct correlation between a consumer's credit and the likelihood that he or she will make a home (or auto) claim." Explain what is wrong with this quote.
(b) Credit scores may be classified as Excellent, Good, Fair, and Poor. Explain how you might go about deciding whether credit scores might be used to determine whether an individual files a claim on his or her homeowner's insurance policy or not. Include an explanation of the type of inferential procedure you would use

Step by Step Solution

★★★★★

3.47 Rating (157 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a The data are qualitative Correlation requires two quantitative variables measured on the same indi... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

1382-M-S-H-T(6446).docx

120 KBs Word File

Students Have Also Explored These Related Statistics Questions!

please please please dont use ai , please use pseudocode so i can learn from it thank you Program 5 _ 1 . py PROGRAM OBJECTIVE Write a program for a checkout system in a store named Shoestring Store...

A study conducted in September and October of 2010 found that fewer than half of employers who hired new college graduates last academic year plan to definitely do so again (The Wall Street Journal,...

A study by the Massachusetts Community & Banking Council found that blacks, and, to a lesser extent, Latinos, remain largely unable to borrow money at the same interest rate as whites (Boston Globe,...

A study claims that all homeowners in a town spend an average of 8 hours or more on house cleaning and gardening during a weekend. A researcher wanted to check if this claim is true. A random sample...

Rev.Confirming Pages C H A P T E R 7 Planning, Composing, and Revising Chapter Outline The Ways Good Writers Write Activities in the Composing Process Using Your Time Effectively Brainstorming,...

Create a powerpoint presentation. Stakeholder Analysis, Solution, and Conclusion: Housing Discnimination Introduction Discniminatory practices that prevent someone from being able to buy or rent a...

Case Analysis 1. Compute the yield to maturity of Land'o'Toys' bonds before the purchase announcement and use it to determine the likely current bond rating. (Compare YTM to the table on p. 269)....

1 What are the main components of personal financial planning? Solve What is the purpose of a financial plan? Solve Identify some common actions taken to achieve financial goals. How does a job...

Post the following: Using one of the participant quotes in the Findings section of the Matheson et al. study, analyze it by first identifying the main themes in the quote. Provide an interpretation...

Does anyone know where this article come from? I wanna cite it as a resource!! Thanks! 41 Auditing Insurance Companies 41.1 OVERVIEW OF THE INDUSTRY (a) Structure of the Industry, (b) Reinsurance,...

Turi's Tee Shirt Shack sold 36 shirts one day. Each short-sleeved tee shirt costs $12, and each long-sleeved tee shirt costs $18. Total receipts for the day were $522. How many of each kind of shirt...

In Mexico your firm has been working hard to earn lucrative contracts with the national oil company, Pemex. One government official has hinted elaborately that his son would like to do marketing...

Find the radius o f convergence, R , o f the series. x 8 n n ( l n ( n ) ) 2 n = 2 R = Find the interval, I, o f convergence o f the series. ( E n t e r your answer using interval notation. ) I =...

3.7.4 For what series is the computation 00 2ak = L (azk +a2k-1) k=1 k=1 valid? Is this a rearrangement?

Scores on an accounting exam ranged from 44 to 96, with quartiles Q;= 60.00, Q = 84.5, and Q3=88.50. (a) Select the correct box plot for the given data. BoxPlot A BoxPlot 40 50 60 50 70 80 90 100 40 ...

2. Can you "beat the market" with public information? That is, can you use publicly available information to help you buy something cheap and quickly sell it at a higher price? Why or why not?

Find the exact value, if any, of each composite function. If there is no value, say it is not defined. Do not use a calculator. sin(cot -1 3/4)

Find the exact value, if any, of each composite function. If there is no value, say it is not defined. Do not use a calculator. cos(csc -1 (5/3))

Find the exact value, if any, of each composite function. If there is no value, say it is not defined. Do not use a calculator. tan(sin -1 (-4/5))

A previously issued A2, 15-year industrial bond provides a return one-half higher than the prime interest rate of 12 percent. Previously issued A2 public utility bonds provide a yield of one-fourth...

A firm is considering two projects with the following cash flows. The required return for project O is 1 0 % . Project M however is riskier and has a required return of 1 5 % Required: a . Calculate...

Lauren wants to buy a car that costs $27,000. She has $22,000 in her bank account currently. If the bank provides with a 721 simple interest rate, how long she will have to wait to reach to her goal...