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Mathematics, 07.05.2020 08:05 kaylailkanic1487
While attempting to measure its risk exposure for the upcoming year, an insurance company notices a trend between the age of a customer and the number of claims per year. It appears that the number of claims keep going up as customers age. After performing a regression, they find that the relationship is (number of claims per year) = 1.187*(age) + 4.663. Interpret the slope. Question 3 options: 1) When number of claims per year increases by 1 claim, age increases by 4.663 years. 2) When age increases by 1 year, number of claims per year increases by 4.663 claims per year. 3) We are not given the dataset, so we cannot make an interpretation. 4) When number of claims per year increases by 1 claim, age increases by 1.187 years. 5) When age increases by 1 year, number of claims per year increases by 1.187 claims per year.
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