The R² for the estimated regression is 1-1 150 Σ (P,-P)² = 130.67. 2 i=1 (Round your answer to two decimal places.) The health insurance company realizes that it has not included another determinant, the ailments that the customers suffer from, which also affects the premium charged by the company. To include this determinant, the company uses data on customers' expenditure on medicines (E;). The estimated regression function is: P = 2.48 +0.76A; + 0.68D; + 0.65E;. After including the data on expenditure on medicines, the company makes the following calculations. 150 Σ (P - Pi) 2 = 28.75. The R² for this estimated regression is i=1 150 Σ (P; -P)² = 130.67. i=1 (Round your answer to two decimal places.) What is the effect on R² and SSR if the coefficient of the added regressor is exactly 0? ○ A. B. C. D. If the coefficient of the added regressor is exactly 0, both the R² and SSR increase. If the coefficient of the added regressor is exactly 0, the R² and SSR both do not change. If the coefficient of the added regressor is exactly 0, the R² increases and the SSR decreases. If the coefficient of the added regressor is exactly 0, the R² decreases and the SSR increases. Health insurance companies are generally faced with the problem of how much premium to charge the customers. Generally, the premium charged by the company (P;) is decided on the basis of the age of the person (A;), and the duration for which the insurance is taken (D;). A health insurance company collects random data on 150 customers. The estimated regression function is: The insurance company makes the following calculations. ¡ = 2.5 + 0.80A; + 0.75D;. 150 Σ (-) = i=1 150 = 70.98. The R² for the estimated regression is ☐ Σ (P-P)² = 130.67. i=1 (Round your answer to two decimal places.) The health insurance company realizes that it has not included another determinant, the ailments that the customers suffer from, which also affects the premium charged by the company. To include this determinant, the company uses data on customers' expenditure on medicines (E;). The estimated regression function is: P; = 2.48 +0.76A; +0.68D; + 0.65E;. After including the data on expenditure on medicines, the company makes the following calculations. 150 Σ(P;-)² = 28.75. 2 The R² for this estimated regression is (Round your answer to two decimal places.) 2 i=1 150 Σ (P; -P)² = 130.67. i=1
The R² for the estimated regression is 1-1 150 Σ (P,-P)² = 130.67. 2 i=1 (Round your answer to two decimal places.) The health insurance company realizes that it has not included another determinant, the ailments that the customers suffer from, which also affects the premium charged by the company. To include this determinant, the company uses data on customers' expenditure on medicines (E;). The estimated regression function is: P = 2.48 +0.76A; + 0.68D; + 0.65E;. After including the data on expenditure on medicines, the company makes the following calculations. 150 Σ (P - Pi) 2 = 28.75. The R² for this estimated regression is i=1 150 Σ (P; -P)² = 130.67. i=1 (Round your answer to two decimal places.) What is the effect on R² and SSR if the coefficient of the added regressor is exactly 0? ○ A. B. C. D. If the coefficient of the added regressor is exactly 0, both the R² and SSR increase. If the coefficient of the added regressor is exactly 0, the R² and SSR both do not change. If the coefficient of the added regressor is exactly 0, the R² increases and the SSR decreases. If the coefficient of the added regressor is exactly 0, the R² decreases and the SSR increases. Health insurance companies are generally faced with the problem of how much premium to charge the customers. Generally, the premium charged by the company (P;) is decided on the basis of the age of the person (A;), and the duration for which the insurance is taken (D;). A health insurance company collects random data on 150 customers. The estimated regression function is: The insurance company makes the following calculations. ¡ = 2.5 + 0.80A; + 0.75D;. 150 Σ (-) = i=1 150 = 70.98. The R² for the estimated regression is ☐ Σ (P-P)² = 130.67. i=1 (Round your answer to two decimal places.) The health insurance company realizes that it has not included another determinant, the ailments that the customers suffer from, which also affects the premium charged by the company. To include this determinant, the company uses data on customers' expenditure on medicines (E;). The estimated regression function is: P; = 2.48 +0.76A; +0.68D; + 0.65E;. After including the data on expenditure on medicines, the company makes the following calculations. 150 Σ(P;-)² = 28.75. 2 The R² for this estimated regression is (Round your answer to two decimal places.) 2 i=1 150 Σ (P; -P)² = 130.67. i=1
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Transcribed Image Text:The R² for the estimated regression is
1-1
150
Σ (P,-P)² = 130.67.
2
i=1
(Round your answer to two decimal places.)
The health insurance company realizes that it has not included another determinant, the ailments that the customers suffer from, which also affects the premium charged by the company. To include
this determinant, the company uses data on customers' expenditure on medicines (E;). The estimated regression function is:
P = 2.48 +0.76A; + 0.68D; + 0.65E;.
After including the data on expenditure on medicines, the company makes the following calculations.
150
Σ (P - Pi) 2
= 28.75.
The R² for this estimated regression is
i=1
150
Σ (P; -P)² = 130.67.
i=1
(Round your answer to two decimal places.)
What is the effect on R² and SSR if the coefficient of the added regressor is exactly 0?
○ A.
B.
C.
D.
If the coefficient of the added regressor is exactly 0, both the R² and SSR increase.
If the coefficient of the added regressor is exactly 0, the R² and SSR both do not change.
If the coefficient of the added regressor is exactly 0, the R² increases and the SSR decreases.
If the coefficient of the added regressor is exactly 0, the R² decreases and the SSR increases.
Transcribed Image Text:Health insurance companies are generally faced with the problem of how much premium to charge the customers. Generally, the premium charged by the company (P;) is decided on the basis of
the age of the person (A;), and the duration for which the insurance is taken (D;). A health insurance company collects random data on 150 customers. The estimated regression function is:
The insurance company makes the following calculations.
¡ = 2.5 + 0.80A; + 0.75D;.
150
Σ (-) =
i=1
150
= 70.98.
The R² for the estimated regression is ☐
Σ (P-P)² = 130.67.
i=1
(Round your answer to two decimal places.)
The health insurance company realizes that it has not included another determinant, the ailments that the customers suffer from, which also affects the premium charged by the company. To include
this determinant, the company uses data on customers' expenditure on medicines (E;). The estimated regression function is:
P; = 2.48 +0.76A; +0.68D; + 0.65E;.
After including the data on expenditure on medicines, the company makes the following calculations.
150
Σ(P;-)² = 28.75.
2
The R² for this estimated regression is
(Round your answer to two decimal places.)
2
i=1
150
Σ (P; -P)² = 130.67.
i=1
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