# statistics

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An insurance firms wants to examine the relationship between text messages per day and insurance claims. The following data is a sample of 5 participants:

Cellphone Texts per day (X) Insuance Claims (\$\$) (Y)
4 800
18 2600
12 2800
26 0
20 6000

Choose the correct Estimated Regression Equation.

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If you need to show the work by hand, you can develop the regression equation in the following format:
predicted y = a + bx
...where a represents the y-intercept and b the slope.

To get to that point, here are some formulas to calculate along the way.

To find a:
a = (Ey/n) - b(Ex/n)

Note: E here means to add up or to find the total.

To find b:
b = SSxy/SSxx

To find SSxy:
SSxy = Exy - [(Ex)(Ey)]/n

To find SSxx:
SSxx = Ex^2 - [(Ex)(Ex)]/n

I hope this will help get you started.

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37

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