PROBLEM :

The amount spent on medical expenses per day is correlated with other health factors for 5 adul

Medical Cost Amount Spent for Alcohol Weight Age Amount Spent for Alcohol
2100 200 185 50 200
2378 250 200 42 250
1657 100 175 37 100
2584 200 225 54 200
2658 250 220 32 250

Which of the following factors has a significant effect on medical expenses? Use a 5% level of s

CORRELATION

Amount Spent for Alcohol Weight

Amount Spent fo 1
Weight 0.660848048043191 1

Amount Spent for Alcohol Age

Amount Spent for Alcohol 1

Age 0 1
er health factors for 5 adult males. A study came up with the following table:

nt Spent for Alcohol Age

50
42
37
54
32

nses? Use a 5% level of significance.

REGRESSION

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.666301942
R Square 0.443958278
Adjusted R Square -0.11208344
Standard Error 64.57795997
Observations 5
ANOVA
df SS MS F Significance F
Regression 2 6659.37417131 3329.687 0.798426 0.5560417219
Residual 2 8340.62582869 4170.313
Total 4 15000

Coefficients Standard Error t Stat P-value Lower 95% Upper 95%

Intercept -157.494696 323.074160894 -0.48749 0.674112 -1547.5706166 1232.5812
Weight 1.902678335 1.50568105434 1.263666 0.333698 -4.5757443639 8.381101
Age -0.58008486 3.59514877568 -0.16135 0.886642 -16.048761552 14.888592

Since p-value = 0.556041722 > alpha = 0.05, then correlation is not significant

p-value for weight = 0.333698 < alpha = 0.05 therefore significant

p-value for age = 0.886642 > alpha = 0.05 therefore not significant

Regression equation:
amount spent for alcohol = 1.90267833 (weight) - 0.5800849 (age) - 157.4947

since age is not significant then the equation can be reduced

amount spent for alcohol = 1.90267833 (weight) - 157.4947

supposed the medical cost

amount spent for alcohol = 1.90267833
Lower 95.0% Upper 95.0%
-1547.570617 1232.5812239
-4.575744364 8.3811010332
-16.04876155 14.888591835