Data from 1990 to 2006 was collected and showed the following linear equation:
Y=20+.05(X)
Y=predicted insurance prem.
X=Mileage driven per year
Interpret the meaning of the regression coefficient of x:
HELP???? please
2007-10-10 11:49:14 · 1 answers · asked by Anonymous in Science & Mathematics ➔ Mathematics
The regression coefficient is one measure of how well the line matched the actual data.
If every point is right on the line (i.e. the formula perfectly predicts the insurance premium given the yearly milage), then the regression coefficient would be 1.0
If there was no correlation at all between what the formula predicts and the actual insurance premiums, the regression coefficient would be 0.
So, the higher the regression coefficient, the better the match between the straight line and the real data and hence the more useful the line would be in prediction.
2007-10-10 20:25:26 · answer #1 · answered by simplicitus 7 · 0⤊ 0⤋