1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
zvonat [6]
3 years ago
10

Insurance Premiums ~ Mona is interested in the relationship between the amount insurance companies pay out for automobile collis

ion claims and what they charge their customers in insurance premiums. Using data from 2014, she selects a random sample of 20 US states. For each state, she calculates the losses incurred by insurance companies per insured driver (Losses) and the average insurance premium for drivers (Premiums). The scatter plot and a summary of the data is given below. The correlation between Losses and Premiums was found to be r = 0.6065.
Round all calculated answers to 4 decimal places.
Variables Mean Sample SD
Losses 134.7425 25.9635
Premiums 895.132 171.8535
1. The relationship between Losses and Premiums is best described as ? (Positive/Negative) and ? (Linear/Nonlinear) .
2. Calculate the slope and intercept for the linear regression equation that predicts Premiums from Losses.Note: Do not use rounded values for intermediate calculations!
Slope:
Intercept:
3. What is the R^2 for this study’s linear regression model of Premiums from Losses?
4. Lisa is evaluating Mona’s work and discovers that her home state was not included in Mona’s sample. Lisa calculates the losses per insured driver for her state to be $254.78. Is it appropriate for Lisa to use Mona’s regression equation to estimate the insurance premium for her state?
(Yes/No) because
A. Lisa's value for Losses is within the range of the data Mona used to create the model.
B. Regression equations cannot be used to make predictions.
C. Mona's model is only valid for the states she used to create the model.
D. Lisa's value for Losses is not within the range of the data Mona used to create the model.
5. Lisa also decides to examine the residuals for Mona’s model to determine if the conditions for linear regression have been met. Which condition is Lisa checking with the following plot?
A. Lisa is checking to see if the residuals are nearly normal.
B. Lisa is checking to see if the data show a linear trend.
C. Lisa is checking to see if the variability of points around the least squares line is roughly constant.
Business
1 answer:
MrMuchimi3 years ago
7 0
B ///////////////////////////
You might be interested in
In working on a bid for project you have determined that $245,000 of fixed assets will be required and that they will be depreci
mote1985 [20]

Answer:

Question 1:

required investment $245,000

depreciation expense per year = ($245,00 - $23,200) / 5 = $44,360

you will also require $15,000 in working capital

annual cash costs = $68,500

what is the minimum amount of cash sales for accepting the project:

net cash flow₁ = {[(sales revenue - $68,500 - $44,360) x 0.65] + $44,360} / 1.14 = (0.65SR - $28,999) / 1.14 = 0.5702SR - $25,437.72

net cash flow₂ = {[(sales revenue - $68,500 - $44,360) x 0.65] + $44,360} / 1.14² = (0.65SR - $28,999) / 1.14² = 0.5002SR - $22,313.79

net cash flow₃ = {[(sales revenue - $68,500 - $44,360) x 0.65] + $44,360} / 1.14³ = (0.65SR - $28,999) / 1.14³ = 0.4387SR - $19,573.50

net cash flow₄ = {[(sales revenue - $68,500 - $44,360) x 0.65] + $44,360} / 1.14⁴ = (0.65SR - $28,999) / 1.14⁴ = 0.3849SR - $17,169.74

net cash flow₅ = {[(sales revenue - $68,500 - $44,360) x 0.65] + $44,360 + $15,000} / 1.14⁵ = (0.65SR - $13,999) / 1.14⁵ = 0.3376SR - $7,270.64

NPV = -initial outlay + cash flows

NPV = 0

initial outlay = cash flows

$260,000 = 0.5702SR - $25,437.72 + 0.5002SR - $22,313.79 + 0.4387SR - $19,573.50 + 0.3849SR - $17,169.74 + 0.3376SR - $7,270.64

$260,000 = 2.2316SR - $91,765.39

$351,765.39 = 2.2316SR

sales revenue = $351,765.39 / 2.2316 = $157,629.23

the closest answer is B = $155,119, but its NPV will be negative.

<u>so we have to select C = $162,515.75 that results in an NPV = $10,887. </u>

Question 2:

<u>The correct answer is D. return on equity will increase.</u>

If you lower your costs while your sales remain the same, your profits will increase as well as your ROE.  

7 0
3 years ago
Human resource management requires the ability to communicate through a variety of channels. T/F
MA_775_DIABLO [31]

Answer:

true

Explanation:

this statement is true

3 0
2 years ago
Which is not something you should look for in a saving account?
pshichka [43]

Answer:

You should make sure you are putting money into it every week, month, or year.

Explanation:

You must make sure you have enough money in the account so if you have some kind of an injury, or you want to buy something that costs lots of money such as a car, or a house, you want to make sure enough money is going into that account.

6 0
3 years ago
A stock had returns of 17.88 percent, −5.16 percent, and 20.39 percent for the past three years. What is the variance of the ret
Arturiano [62]

Answer:

Variance of the return = 0.01983

Explanation:

S^{2}= Σ(X-X)^{2}/ N - 1

Mean return = 17.88% + -5.16% + 20.39% = 11.0367%  

Variance = [(17.88% - 11.0367%)2 + (-5.16% - 11.0367%)2 + (20.39% - 11.0367%)2] /(3 - 1)

Variance = [0.004683 + 0.026233 + 0.008748]/2

Variance = 0.01983

6 0
3 years ago
A contractor purchased a dozer for $180,000 and anticipates using it for nine years. The salvage value of the dozer at the end o
ArbitrLikvidat [17]

The salvage value of the dozer at the end of year 1 is $163,000

The salvage value of the dozer at the end of year 2 is $146,000

The salvage value of the dozer at the end of year 3 is  $129,000

The salvage value of the dozer at the end of year 4 is  $112,000

The salvage value of the dozer at the end of year 5 is 95,000

The salvage value of the dozer at the end of year 6 is 78,000

The salvage value of the dozer at the end of year 7 is 61,000

The salvage value of the dozer at the end of year 8 is $44,000

The salvage value of the dozer at the end of year 9 is $27,000.

<h3>What is the book value of the dozer?</h3>

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

(180,000 - $27,000) / 9 = $17,000

Book value = cost of the asset - depreciation expense

  • Year 1 = $180,000 - $17,000 = $163,000
  • Year 2 = $163,000 - $17,000 = $146,000
  • Year 3 = $146,000   - $17,000 = $129,000
  • Year 4 =  $129,000 - $17,000 = $112,000
  • Year 5 =   $112,000 - $17,000 = 95,000
  • Year 6 = 95,000  - $17,000 = $78,000
  • Year 7 = $78,000 - $17,000 = $61,000
  • Year 8 =  $61,000  - $17,000 = $44,000
  • Year 9 =   $44,000- $17,000 = $27,000

To learn more about straight line depreciation, please check: brainly.com/question/6982430

5 0
2 years ago
Other questions:
  • Consider the overall market for beverages in the US. This market consists of both alcoholic and non-alcoholic drinks. Within the
    9·1 answer
  • On July 1, 2019, Cullumber Company pays $12,000 to Kalter Insurance Co. for a 3-year insurance contract. Both companies have fis
    9·1 answer
  • Davidson Electronics has the following: Units Unit Cost Inventory, Jan. 1 5,000 $ 8 Purchase, April 2 15,000 10 Purchase, Aug. 2
    12·1 answer
  • Mintzberg characterized managers' interaction with people both inside and outside of their work units as their _______ roles.
    6·1 answer
  • What does the preamble to the Constitution envision?
    12·2 answers
  • You buy a lottery ticket to a lottery that costs $10 per ticket. There are only 100 tickets available to be sold in this lottery
    11·1 answer
  • Kershaw Electric sold $6,000,000, 10%, 10-year bonds on January 1, 2019. The bonds were dated January 1, 2019, and paid interest
    12·1 answer
  • Can these workers build the desired houses without plan?explain your answer.​
    14·1 answer
  • After firm A producing one good acquired another firm B producing another good, it lowered the prices for the bundle of goods. O
    13·1 answer
  • Which of the following is an example of a nontariff barrier that restricts access to distribution networks?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!