The University of Michigan offers a $500,000 life insurance policy. Monthly rates for nonsmoking faculty are shown in Table 49 for various ages.

Let y be the monthly rate (in dollars) for a nonsmoking faculty member at x years of age.
a. Find a regression equation.
b. What is the base b of your model = abx? What does it mean in this situation?
c. What is the coefficient a of your model = abx? What does it mean in this situation?
d. Use the model to predict the monthly rate for a 37-year-old nonsmoking faculty member. What is the residual for the prediction? What does it tell you about the situation?
e. For many life insurance policies, monthly rates for women are different from monthly rates for men. Assume these rates depend on life expectancy only. Given that the life expectancy of women is higher than that of men, would women or men pay higher monthly rates? Explain.

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Table 49 University of Michigan Life Insurance Monthly Rates for Nonsmoking Faculty Age Group (years) 30-34 35 39 40-44 45-49 50-54 55-59 60-64 Age Used to Represent Age Group (years) 32 37 42 Monthly Rate (dollars) 15.00 18.50 26.00 52 57 62 67 75.50 118.00 195.50 326.60