Explore BrainMass
Share

Explore BrainMass

    amount of life insurance

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    1) One member of the management board claims that for every $1000 increase in income, the amount of life insurance held will go up by $5000. Choose an alternative hypothesis and explain your choice. Does your estimated relationship support this claim? Use a 5 percent significance level.

    2) Test the hypothesis that as income increases the amount of life insurance increase by the same amount. That is, test the hypothesis that the slope of the relationship is 1.

    Thank you!

    © BrainMass Inc. brainmass.com October 9, 2019, 5:27 pm ad1c9bdddf
    https://brainmass.com/economics/regression/amount-of-life-insurance-57514

    Attachments

    Solution Preview

    1) One member of the management board claims that for every $1000 increase in income, the amount of life insurance held will go up by $5000. Choose an alternative hypothesis and explain your choice. Does your estimated relationship support this claim? Use a 5 percent significance level. ...

    Solution Summary

    The amount of life insurance is assessed.

    $2.19