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.
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 genderc. Using the 1% significance level, can you conclude that the coefficient of gender is different from zero?
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