SCENARIO 14-10
You Worked as an Intern at We Always

Short Answer

SCENARIO 14-10
You worked as an intern at We Always Win Car Insurance Company last summer. You notice that
individual car insurance premiums depend very much on the age of the individual and the number of
traffic tickets received by the individual. You performed a regression analysis in EXCEL and
obtained the following partial information: $\begin{array}{l}\hline{ \text { Regression } \text { Statistics } } \\\hline \text { Multiple R } & 0.8546 \\\text { R Square } & 0.7303 \\\text { Adjusted R Square } & 0.6853 \\\text { Standard Error } & 226.7502 \\\text { Observations } & 15 \\\hline\end{array}$

$\text { ANOVA }$


$\begin{array} { l r r r r r r } \hline & \text { Coefficients } & \text { Standard Error } & { \text { tStat } } & \text { P-value } & \text { Lower 99\% } & \text { Upper 99\% } \\\hline \text { Intercept } & 821.2617 & 161.9391 & 5.0714 & 0.0003 & 326.6124 & 1315.9111 \\\text { Age } & - 1.4061 & 2.5988 & - 0.5411 & 0.5984 & - 9.3444 & 6.5321 \\\text { Tickets } & 243.4401 & 43.2470 & 5.6291 & 0.0001 & 111.3406 & 375.5396 \\\hline\end{array}$
-Referring to Scenario 14-10, the 99% confidence interval for the change in mean insurance
premiums of a person who has become 1 year older (i.e., the slope coefficient for AGE) is
-1.4061 ± _______.