Suppose an insurance company wishes to determine which of the subscribers to the

Question

Suppose an insurance company wishes to determine which of the subscribers to the 3 health plans the company offers (HMO, PPO plan, and traditional) exhibit better health characteristics. The firm has the following data for each of their subscribers: Percentage of body weight over optimum weight; blood pressure; cholesterol; hours per week of exercise. The goal of the analysis is to categorize the subscribers to each plan as: healthy/somewhat healthy/not healthy. Is a regression analysis the best way for the insurance company to achieve its goal? Begin your answer with Yes or No, then briefly defend your recommendation.

Explanation / Answer

The answer is yes the reason for the answer is that there are more than one variables(dependent)element i.e percentage of body weight over optimum weight, blood pressure,cholesterol,hours per week of exercise all these are dependent upon each other to find out the outcome i.e healthy ,somewhat healthy, not healthy and regression analysis is the best statistical tool to find out the outcome.

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