A health insurance company conducted a linear regression analysis between the number of claims per customer (Y) and customer age (X) that resulted in the following equation analyzing customer risk: The above equation implies that an
A) increase of one year in age is correlated with an increase of 5 claims.
B) increase of one year in age is correlated with an increase of 1 claim.
C) increase one year in age is correlated with an increase of 50.
D) increase of one year in age is correlated with a decrease of 5 claims.

Question

A health insurance company conducted a linear regression analysis between the number of claims per customer (Y) and customer age (X) that resulted in the following equation analyzing customer risk:  The above equation implies that an
A) increase of one year in age is correlated with an increase of 5 claims. 
B) increase of one year in age is correlated with an increase of 1 claim. 
C) increase one year in age is correlated with an increase of 50. 
D) increase of one year in age is correlated with a decrease of 5 claims.

Quizplus · Accepted Answer

The Answer of A health insurance company conducted a linear regression analysis between the number of claims per customer (Y) and customer age (X) that resulted in the following equation analyzing customer risk:  The above equation implies that an
A) increase of one year in age is correlated with an increase of 5 claims. 
B) increase of one year in age is correlated with an increase of 1 claim. 
C) increase one year in age is correlated with an increase of 50. 
D) increase of one year in age is correlated with a decrease of 5 claims.

A Health Insurance Company Conducted a Linear Regression Analysis Between