An insurance agent has selected a sample of drivers that she insures whose ages are in the range from 16-42 years old. For each driver, she records the age of the driver and the dollar amount of claims that the driver filed in the previous 12 months. A scatterplot showing the dollar amount of claims as the response variable and the age as the predictor shows a linear trend. The least squares regression line is determined to be: y = 3715-75.4x. A plot of the residuals versus age of the drivers showed no pattern, and the following were reported: r² =.822 Standard deviation of the residuals Se 312.1 The histogram summarizing the residuals is reasonably symmetric around zero and bell-shaped. Using the Empirical Rule, complete the sentence: Approximately 68% of the dollar amounts of claims are within dollars of the regression line.
1(312.1) +2 (3171) 312.1 √12 ± 2 (312.1)