A fire insurance company wants to examine the relsationship between the amount o

Question

A fire insurance company wants to examine the relsationship between the amount of fire damege in major residential fires to the distanos betwsen the burming house and the nearest fire station. A sample of 15 recent fires in a paricular city was taken. The aou of darrage lo the house in ousarids ofdolas) ad the dis rom the burnirg tuse lo ih neaest fie slalion in rres) was recoded. Parl ofoutput frorn a siiple linear regressii analysis is provided. Assume all cocitions are met fer simple linear regression interence. In words, what is the correct altative hychesis to determine i the distance the biuming hause is to the nearest fire station is a significant predictr of damage to a burning house? Click the icon to view the regression analysis. Choose the correct answer below A. OB. c O D· Amount of damage to the burning house does rot help explain tr.e number of mies the burning house is from the nearest fire station. The number of miles the buming house is from the nearest fire station helps explain the amount of camage to the buming house. The number of niles the burning house is from the nearest tre station des not help explain the amount or damage to the burning house Armount of damage to the burning house helps explan lhe number of miles lhe burn ng nouse trom the nearest fire station.

Explanation / Answer

The alternate hypothesis is always the research hypothesis in any hypothesis test. In regression analysis it is defined as the hypothesis where we say that the predictor variable is able to explain the variance in the dependent variable. From the predictor table we see that the independent variable is distance that is the number of miles the burning house is from the nearest fire station. Therefore here alternate hypothesis is that this distance helps explain the amount of damage to the burning house.

Therefore b is the correct answer here.

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