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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 ///////////////////////////
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System testing:
yarga [219]

Answer:

C) tests the functioning of the system as a whole.

Explanation:

System testing refers to a process in which a complete system is evaluated to make sure that it works properly and fulfills the requirements. According to this, the answer is that system testing tests the functioning of the system as a whole.

The other options are not right because system testing doesn't separate components or programs as it involves the actual evaluation of the whole system to find defects and it is done before the acceptance testing.

3 0
3 years ago
From 2015 to 2016, the overall price level rose from 200 to 220. Over the same period, tuition rates at the local community coll
Nikolay [14]

Answer:

C

Explanation:

Inflation is a persistent rise in general price level

Rise in Inflation rate = 220 / 200 - 1 = 10%

Rise in tuition fees = 115 / 100 - 1 = 15%

From the calculations, the percentage change in tuition fees is higher than the percentage change in inflation rate

3 0
3 years ago
"If Jason receives his quarterly bonus of $3,000 and spends $2,100 on a computer and puts the rest in his savings account, what
snow_lady [41]

Answer: 0.70; 0.30

Explanation:

Marginal propensity to consume(MPC) is the additional spending by an economic agent due to a rise in income while the marginal propensity to save is the additional saving by someone due to rise in income.

Increase in income = $3,000

Increase in spending = $2,100

Increase in savings = $3,000 - $2,100 = $900

MPC = $2,100/$3,000

= 0.70

MPS = $900/$3,000

= 0.30

7 0
3 years ago
A manager must make a decision on shipping. There are two shippers, A and B. Both offer a two-day rate: A for $510 and B for $52
Sveta_85 [38]

Answer:

The supplier should ship 2 days using B as it yields the lowest cost.

Explanation:

Base on the scenario been described in the question, we can use the following method to solve the question

Units 410

Unit price $ 156.00

total cost of product to be shipped = (Unit price * Units) = 410*156 $ 63,960.00

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Holding cost for 1 day = 24944.40/365 $ 68.341

Shipper A

Alternative Shippping cost Holding days Holding days * Holding cost for 1 day Total cost = Shipping + holding cost

2-Day $ 538.00 2 $ 136.682 $ 674.68

3 day $ 472.00 3 $ 205.022 $ 677.02

9 day $ 406.00 9 $ 615.067 $ 1,021.07

Shipper b

Alternative Shippping cost Holding days Holding days * Holding cost for 1 day Total cost = Shipping + holding cost

2-Day $ 529.00 2 $ 136.682 $ 665.68

4 day $ 455.00 4 $ 273.363 $ 728.36

7 Day $ 428.00 7 $ 478.386 $

5 0
3 years ago
During a recession, median income falls by 15%. if the demand for grapes falls by 12%, grapes are a(n) _____ good with an income
IgorLugansk [536]
<span>Grapes are a(n) "normal good" with an income elasticity of demand of "0.8". A normal good is a good for which an increase in income results in increased demand, while decreased income results in decreased demand. Thus, we know that the first blank is "normal good" by the definition of a normal good becuase median income fell and demand for grapes fell. The X elasticity of demand is given by (%change in Demand)/(%change in X), where x is any economic variable (income in this case). Thus, to find the elasticity, we divide 12% by 15%. 12%/15%=.08.</span>
7 0
3 years ago
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