The monthly premium quoted by an insurance company for a critical illness policy was collected from a sample of 6 adult male smokers at different age. The data for the sample are shown: Age 28 25 50...

The monthly premium quoted by an insurance company for a critical illness policy was collected from a sample of 6 adult male smokers at different age. The data for the sample are shown:

Age	28	25	50	39	47	31
Premium ($)	75	40	175	125	250	105

Using Age to predict premium, the Linear Regression equation is given by:

ŷ =6.556X−112 and r2=0.813y^=6.556X−112 and r2=0.813

a.
Identify the independent and Dependent variables.

Dependent:

Age

Premium

Independent:

Age

Premium

b.
Determine the slope.

Slope = Slope =

Round to 3 decimal places

c.
Determine |r||r| .

|r|=|r|=

Round to 3 decimal places

d.
Interpret rr :

and

e.
Determine critical r value at 5% significance level and determine if there is a significant linear correlation exists.

|r| critical=|r| critical=

Round to 3 decimal places

Linear Correlation:Linear Correlation:

Significant

Not Significant

f.
Predict the monthly premium for a 40 years old adult male smoker.

Premium=Premium=

Round to the nearest dollar

Jun 07, 2022

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The monthly premium quoted by an insurance company for a critical illness policy was collected from a sample of 6 adult male smokers at different age. The data for the sample are shown: Age 28 25 50...

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