Graded Homework 19
You have submitted this Homework 2 times (including this time).
You may submit this Homework a total of 40 times and receive full credit.
This homework deals with the adjusted Rsquared statistic and its relationship with
('regular' unadjusted) Rsquared.
Question #1
You worked as an intern at We Always Win Car Insurance Company last summer
and noticed that individual car insurance premium depended very much on the age of
the individual, the number of traffic tickets received by the individual and the
population density of the city in which the individual lived.
To see if your conjecture is correct, you collected the following EXCEL
data set
.
In EXCEL, run a regression of insurance premium in dollars per month of an
individual (RATE) on age of the individual in years (AGE), number of tickets
received by the individuals (TICKETS) and the population density in hundreds of
persons per square mile in which the individual lived (DENSITY).
From the regression output,
0.604292353
of the total variability in insurance
premium could be explained by AGE, TICKET and DENSITY. Also the coefficient
of determination adjusted for the degrees of freedom is
0.496372086
, the standard
error of the equation is
46.6128731
, the estimated average change in insurance
premium for every
ten
additional tickets received is
367.8352132
dollars per
month, while the estimated average change in insurance premium for every
five
additional years of age is
7.01819349
dollars per month.
You received a raw score of 100% on this question.
Question #2
You decided to predict gasoline prices in different cities and towns in the United
States for your modelling project. Your dependent variable is price of gasoline per
gallon and your independent variables are per capita income (in dollars), number of
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 Spring '08
 Petry
 Regression Analysis, insurance premium

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