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Mathematics, 09.08.2021 20:50 wallacelizzy1
While attempting to measure its risk exposure for the upcoming year, an insurance
company notices a trend between the age of a customer and the number of claims
per year. It appears that the number of claims keep going up as customers age. After
performing a regression, they find that the relationship is (claims per year) = 0.17*
(age) +2.04. If a customer is 47 years old and they make an average of 14.72 claims
per year, what is the residual?
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While attempting to measure its risk exposure for the upcoming year, an insurance
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