Business, 03.08.2019 05:20 dkh2021

Ihi insurance have conducted a multiple linear regression analysis to predict the value of the number of annual claims incurred by a motor insurance policyholder (y) based on the age of the policyholder in years (x1) and the value of the car insured in thousands of dollars (x2). the analysis was based on a random sample of 500 policyholders. the ages in the sample ranged from 16 to 70 and the values of the cars in the sample ranged from $1,100 to $52,000. the multiple linear regression equation corresponding to ihi's analysis is:
y ^i = 13 + (-0.5)x1i + (0.1)x2i.
select whether the following statements regarding the multiple linear regression equation are true or false:
a) holding x2 constant, a one year increase in x1 will result in a decrease of 0.5 in the predicted value of y.
b) a 28 year old policyholder with a car worth $20,000 is predicted to make 29 claims.
c) holding x1 constant, a one thousand dollar increase in x2 will result in an increase of 0.1 in the predicted value of y.

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 00:40

The silverside company is considering investing in two alternative projects: project 1 project 2 investment $500,000 $240,000 useful life (years) 8 7 estimated annual net cash inflows for useful life $120,000 $40,000 residual value $32,000 $10,000 depreciation method straightminusline straightminusline required rate of return 11% 8% what is the accounting rate of return for project 2? (round any intermediary calculations to the nearest dollar, and round your final answer to the nearest hundredth of a percent, x.xx%.)

Answers: 3

Answer

Business, 22.06.2019 05:00

You are chairman of the board of a successful technology firm. there is a nominal federal corporate tax rate of 35 percent, yet the effective tax rate of the typical corporation is about 12.6%. your firm has been clever with use of transfer pricing and keeping money abroad and has barely paid any taxes over the last 5 years; during this same time period, profits were $28 billion. one member of the board feels that it is un-american to use various accounting strategies in order to avoid paying taxes. others feel that these are legal loopholes and corporations have a fiduciary responsibility to minimize taxes. one board member quoted what the ceo of exxon once said: “i’m not a u.s. company and i don’t make decisions based on what’s good for the u.s.” what are the alternatives? what are your recommendations? why do you recommend this course of action?

Answers: 2

Answer

Business, 22.06.2019 08:30

Sonic corp. manufactures ski and snowboarding equipment. it has estimated that this year there will be substantial growth in its sales during the winter months. it approaches the bank for credit. what is the purpose of such credit known as? a. expansion b. inventory building c. debt management d. emergency maintenance

Answers: 3

Answer

Business, 22.06.2019 10:30

How are interest rates calculated by financial institutions? financial institutions generally calculate interest as (1) interest or (.

Answers: 1

Answer

You know the right answer?

Ihi insurance have conducted a multiple linear regression analysis to predict the value of the numbe...

Questions