A fire insurance company wants to examine the relationship between the amount of

Question

A fire insurance company wants to examine the relationship between the amount of fire damage in major residential fires to the distance between the burming house and the nearest fire station. A sample of 15 recent fires in a particular city was taken. The amount of damage to the house (in thousands of dollars) and the distance from the burning house to the nearest fire station (in miles) were recorded. Part of the output from a simple linear regression analysis is given below. Assume all conditions are met for simple linear regression inference. A hypothesis test is to be performed to determine if the distance from the nearest fire station is a significant predictor of amount of damage. Which of the following is the correct conclusion based on the results of the hypothesis test? Click the icon to view the regression analysis Choose the correct answer below A. donco to indicato that the distance om the nearest fro station is a significant prod tor of the amount of damage t statistic-2337, dos 13, P value = 0.018 There is suggestive o There is suggestive, but weak evidence to indicate that the distance a There is not enough evidence to indicate that the distance from the nearest There is suggest e, but weak evidence to indicate that the distance a There is strong evidence to m the nearest fire statio is a significant predictor o the amount of damage t statistics 2.137, do = 13, P value = 0.052 B. C. D. O E is a s gnificant predictor of the amount of damage t-statistic 1 403, d = 14, P value =0.182 re sta n the nearest e station is a significant predictor o the amount of damage t statistics 2.137, do = 14, P value = 0.051). dicate th at the distance from the nearest fire station is a sigri cant predictor of the amount of damage t statistic= 2.137, do 13 P-value =0.052 Regression Analysis Predictor Constant distance Coof 16.301 3.554 SE Coof 6.015 .663 S= 9.8101 R-Sq=26.0% PrintDone

Explanation / Answer

Lets first calculate the t stat as

Coeff/SE = 3.554/1.663 = 2.137 is the t stat value

so now we are left with option A , B and D

total number of sample is 15 , so dof = n-1 = 15-1 = 14

this leaves us with option D, nenevrtheless we calculate the p value from the t table using

dof = 14 and t = 2.137

which is 0.05073 , approx 0.051 , hence D

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.