EQ Insurance's incomes (Premium) are thought to be related to the level of insurance sold. Data...
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EQ Insurance's incomes (Premium) are thought to be related to the level of insurance sold. Data for Premium income and policies sold are given below: Year 1 Units sold (x) 10 Premium (y) 5 2 14 3 3 7 5 4 55 12 2 7 6 6 8 a) Compute the simple linear expression of insurance income on units sold using the least squares method. b) Estimate the level of insurance Premium for year 7 if the units sold is 10 Ghana cedis, using the regression equation obtained in (a) above. c) Calculate the correlation coefficient ween the Premium and units sold explain your answer. d) Estimate the coefficient of determination and explain your results. EQ Insurance's incomes (Premium) are thought to be related to the level of insurance sold. Data for Premium income and policies sold are given below: Year 1 Units sold (x) 10 Premium (y) 5 2 14 3 3 7 5 4 55 12 2 7 6 6 8 a) Compute the simple linear expression of insurance income on units sold using the least squares method. b) Estimate the level of insurance Premium for year 7 if the units sold is 10 Ghana cedis, using the regression equation obtained in (a) above. c) Calculate the correlation coefficient ween the Premium and units sold explain your answer. d) Estimate the coefficient of determination and explain your results.
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Applied Statistics for Public and Nonprofit Administration
ISBN: 978-1285737232
9th edition
Authors: Kenneth J. Meier, Jeffrey L. Brudney, John Bohte
Posted Date:
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