An insurance firm wanted to find the effect of driving experience and number of driving violationson the motor insurance premium. A random sample of 15 drivers insured with the company and having...


An insurance firm wanted to find the effect of driving experience and number of driving violationson the motor insurance premium. A random sample of 15 drivers insured with the company and having similar motor insurance policies was selected. The schedule below lists the monthly motor insurance premiums (in Ghana Cedis) paid by these drivers, their driving experience (in years),and the number of driving violations that each of them has committed during the past five years.







































































































Monthly
Premium
(GHS)
Driving
experience
(Years)
Number of
driving
violations (past
5 years)


Gender
5141F
60133M
35190M
4691F
9935F
43161M
57113F
7452M
38140F
5061F
63103M
9746M
5582F
7358F
8098M



Using R (or any other statistical software package),
a. Find the regression of monthly motor insurance premium on the years of driving experience, the number of driving violations, and the gender of drivers.
Using the output obtained to answer the following questions:
b. Construct a 99% confidence interval for the coefficient of gender
c. Using the 1% significance level, can you conclude that the coefficient of gender is different from zero?



Jun 01, 2022
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