9.7 A Complete Example

In the previous sections, we presented the basic elements necessary to fit and use a straight-line regression model. In this section, we will assemble these elements by applying them in an example with the aid of computer software.

Suppose a fire insurance company wants to relate the amount of fire damage in major residential fires to the distance between the burning house and the nearest fire station. The study is to be conducted in a large suburb of a major city; a sample of 15 recent fires in this suburb is selected. The amount of damage, y, and the distance between the fire and the nearest fire station, x, are recorded for each fire. The results are given in Table 9.5 and saved in the FIREDAM file.

Table 9.5 Fire ...

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