In linear regression, if 'X' is the year (Year 1, 2, 3… and so on), how would you calculate future claims?
A)Future claims = X + Slope + Intercept
B)Future claims = Slope + Intercept * X
C)Future claims = (Slope + Intercept)/X
D)Future claims = Intercept + Slope * X
E)Future claims = (Intercept + Slope) * X

Question

Quizplus · Accepted Answer

In linear regression, the formula to predict future values (future claims, in this case) is given by Y = Intercept + Slope * X, where Y is the dependent variable (future claims), X is the independent variable (year), the intercept is the value of Y when X is 0, and the slope is the change in Y for a one-unit change in X.

In Linear Regression, If 'X' Is the Year (Year 1