Mathematics, 03.04.2020 03:00 moonk7733
The Happy Health Insurance Company is concerned about rising costs of the claims submitted by their insured customers that now average over $100. To determine whether they can do a better job of screening for new policy applications (to cherry pick the people who will file fewer and/or lower claims, thereby saving money for Happy Health), the Happy Health Insurance Company asked its underwriters to predict which variables might be correlated with a lower average cost of claims filed. From a long list of possible predictors submitted by the underwriters, Happy Health chose weight, number of previous claims, exercise, and age, then reviewed a sample of 1250 customers who filed claims in the past 12 months to determine whether weight (in pounds), number of claims filed in the past year, amount of exercise (hours per week), and age have any predictive value for the average claim cost in dollars to the insurance company. The results are listed below. What percentage of variance in average cost of claims (amount of money paid by Happy Health) is accounted for by weight, claims filed, exercise, and age
Answers: 3
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The Happy Health Insurance Company is concerned about rising costs of the claims submitted by their...
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