Refer to the Regression Models file in the Week 1 folder Tha

Refer to the Regression Models file in the Week 1 folder. That file provides you with information on the regression model used to explain and predict the cost of claims for the insurance company.

Please the following questions:

1. Can this model be used for studying the cost of claim? (why?)

2. How well does model explain the cost of claim? (please indicate the percentage)

3. What variable(s) has(ve) impact on the cost of claim?

4. What type of claim is the most costly to your company? (average dollar amount)

5. Does damage caused by theft play a significant role in company\'s performance?

Solution

1. Can this model be used for studying the cost of claim? (why?)

Yes, because we have a regression that can provide a better information

2. How well does model explain the cost of claim? (please indicate the percentage)

R^2 = 85.95%

3. What variable(s) has(ve) impact on the cost of claim?

independent and dependent variables