Waterbury Insurance Company wants to study the relationshipbetween the amount of fire damage and the distance between theburning house and the nearest fire station. This information willbe used in setting rates for insurance coverage. For a sample of 30claims for the last year, the director of the actuarial departmentdetermined the distance from the fire station (x) and the amount offire damage, in thousands of dollars (y). The MegaStat output isreported below
| ANOVA table |
| Source | SS | df | MS | F |
| Regression | 1830.5782 | 1 | 1830.5782 | 41.15 |
| Residual | 1245.4934 | 28 | 44.4819 | |
| Total | 3076.0716 | 29 | | |
| | | | |
| | | | |
| Regression output | | | | |
| Variables | Coefficients | Std. Error | t(df=28) | |
| Intercept | 14.1988 | 3.137 | 2.962 | |
| Distance–X | 3.97985 | 8.842 | 6.411 | |
-1. Write out the regression equation. (Round your answers to 3decimal places.) a-2. Is there a direct or indirect relationshipbetween the distance from the fire station and the amount of firedamage? How much damage would you estimate for a fire 9 miles fromthe nearest fire station? (Round your answer to the nearest dollaramount.) c-1. Determine and interpret the coefficient ofdetermination. (Round your answer to 3 decimal places.) c-2. Fillin the blank below. (Round your answer to one decimal place.) d-1.Determine the correlation coefficient. (Round your answer to 3decimal places.) d-2. Choose the right option. d-3. How did youdetermine the sign of the correlation coefficient? e-1. State thedecision rule for 0.01 significance level: H0 : Ï = 0; H1 : Ï â‰ 0.(Negative value should be indicated by a minus sign. Round youranswers to 3 decimal places.) e-2. Compute the value of the teststatistic. (Round your answer to 2 decimal places.) e-3. Is thereany significant relationship between the distance from the firestation and the amount of damage? Use the 0.01 significance level.rev: 10_12_2017_QC_CS-102203
