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	1875.5782	1	1875.5782	42.33
Residual	1240.4934	28	44.3033
Total	3116.0716	29
Regression output
Variables	Coefficients	Std. Error	t(df=28)
Intercept	12.59075	3.1151	3.547
Distance–X	2.62225	7.347	6.509

1. Write out the regression equation. (Round your answersto 3 decimal places.)

2. a-2. Is there a direct or indirect relationshipbetween the distance from the fire station and the amount of firedamage?

3. How much damage would you estimate for a fire 6 miles from thenearest fire station? (Round your answer to the nearestdollar amount.)

4. c-1. Determine the coefficient ofdetermination. (Round your answer to 3 decimalplaces.)

5. c-2. Fill in the blank below. (Roundyour answer to one decimal place.)

6. d-1. Determine the correlation coefficient.(Round your answer to 3 decimal places.)

7. d-2. Choose the right option.

8. d-3. How did you determine the sign of thecorrelation coefficient?

9. e-1. State the decision rule for 0.01significance level: H₀ : ρ = 0;H₁ : ρ ≠ 0. (Negative valueshould be indicated by a minus sign. Round your answers to 3decimal places.)

10. e-2. Compute the value of the test statistic.(Round your answer to 2 decimal places.)

11. e-3. Is there any significant relationshipbetween the distance from the fire station and the amount ofdamage? Use the 0.01 significance level.