a3 - Weihan Ni A20252394 MBA 507 Decision making Assignment...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Weihan Ni A20252394 MBA 507 Decision making Assignment 3 8.2 a) Mileage b) Price c) Price decreases by $151 as each 10000 miles the mileage increases. d) The average price of used car with 0 mileage is 24356.15 by this model. e) = 24356.15 – 100000*0.0151 = $ 22846.15 f) e = Price - = 24000 – 22846.15 = 1153.85 8.6 = 23847 – 923*(-0.169) =23847+155.987= 24002.987 8.8 This model makes no sense. The independent variable, Job Type, is not quantitative, because it has no unit. 8.18 a) $/sq ft. b) R 2 =0.79 2 =0.6241 c) Δprice= r*Δarea=0.79*2SD=1.58SD, so the is 1.58 standard deviation higher than the mean. 8.22 a) The model is not appropriate. The relationship is not linear. b) The model is not appropriate. The spread is decreasing. c) The model is appropriate. The residual plot looks good. 8.26 There is one policy worth too much, $996953.24.This makes the R 2 much bigger than it should be. The actuary should rule this out and rebuild the model. 8.46 a)
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 9

a3 - Weihan Ni A20252394 MBA 507 Decision making Assignment...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online