Question

Twenty- one young men got a quote for the cost of a car insurance policy. The policy and ages of the men are shown in the scatter plot.

Answer 1

We were given the graphed data attached. It is from here that we will make our observations

From the data given, we will observe a negative correlation from the graph. This means that the relationship that exists between the variables is such that, as the cost of car insurance policy increases, the age decreases and, as the cost of car insurance policy decreases, the age increases

The y-intercept of the line of best tends to be around $3,700 irrespective of the age (NOT $0 at 8,897 years old)

The average car insurance policy for 20 & 21 years olds are:

`\begin{gathered} n_(20)=(2500+2700+2900)/(3) \\ n_(20)=(8100)/(3)=2700 \\ n_(20)=\text{\$}2,700_{} \\ \\ n_(21)=(2200+2300+2600)/(3) \\ n_(21)=(7100)/(3)=2367 \\ n_(21)=\text{\$}2,367 \\ \\ n_(21)-n_(20)=2700-2367=333\approx315 \\ \therefore n_(21)-n_(20)\approx\text{\$}315 \end{gathered}`

Therefore, the following statements are correct:

Car insurance policy tends to decrease as the age of the driver increases

The line of best indicates in general the cost of a car insurance policy for a 21-year old should be on average about $315 less than the cost of a car insurance policy for a 20-year old