Question

13. Below is a table detailing the age of nine randomly selected houses and the insurance claims made on each home during the past five years. a Construct a scatterplot for this data set in the region to the right (with age of houses as the independent variable, and five-year insurance claim amount as the dependent variable.) b. Based on the scatterplot, does it look like a linear regression model is appropriate for this data? Why or why not? C. Add the line of best fit (trend line linear regression line) to your scatterplot. Give the equation of the trend line below. Then, give the slope value of the line and explain its meaning to this context. d. Determine the value of the correlation coefficient. Explain what this value tells you about the two variables. e. Based on the linear regression equation, what is the predicted amount of insurance daims during a five year period for a home of 50 years old? Show your calculation work. 1. If there were $5,000 in insurance claims on a house during a seven year period, what would be the expected age of that house? g. Determine the value of the coefficient of determination. Explain what this value tells you about the two variables.

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