I’m working on a statistics exercise and need an explanation and answer to help me learn.
1.While
attempting to measure its risk exposure for the upcoming year, an
insurance company notices a trend between the age of a customer and the
number of claims per year. It appears that the number of claims keep
going up as customers age. After performing a regression, they find that
the relationship is (number of claims per year) = 2.046*(age) + 4.976.
Interpret the slope.
1)
When number of claims per year increases by 1 claim, age increases by 4.976 years.
2)
When number of claims per year increases by 1 claim, age increases by 2.046 years.
3)
When age increases by 1 year, number of claims per year increases by 2.046 claims per year.
4)
When age increases by 1 year, number of claims per year increases by 4.976 claims per year.
5)
We are not given the dataset, so we cannot make an interpretation.
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