Assignment:
The ratings below are based on collision claim experience and theft frequency for 12 makes of small, two-door cars. Higher numbers reflect higher claims and more frequent thefts, respectively.
|
Collision
|
Theft
|
Collision
|
Theft
|
|
103
|
103
|
106
|
97
|
|
97
|
113
|
139
|
425
|
|
105
|
81
|
110
|
82
|
|
115
|
68
|
96
|
81
|
|
127
|
90
|
84
|
59
|
|
104
|
79
|
105
|
167
|
a. Determine the least-squares regression line for predicting the rate of collision claims on the basis of theft frequency rating.
b. Calculate and interpret the values of r and r2.
c. If a new model were to have a theft rating of 110, what would be the predicted rating for collision claims?
Provide complete and step by step solution for the question and show calculations and use formulas.