Module 2: Basics of regression analysis

(The attached PDF file has better formatting.)

Homework Assignment: attributes of classical regression analysis

Claim severity and speed

Suppose a regression of Y = the logarithm of claim severity on X = the speed of the car satisfies the five attributes of classical regression analysis on pages 15-17. Explain whether of regression of Yʹ = claim severity on X = the speed of the car satisfies each attribute.

Jacob: What is this homework assignment asking?

Rachel: Yʹ = e^Y. If the conditional distribution of Y, given X, is symmetric, is the conditional distribution of Yʹ, given X, symmetric or skewed? Answer this question for each of the five attributes on page 15-17:

           symmetric vs skewed

           single mode vs multiple modes

           normal vs heavy tailed

           equal vs unequal spread

           linear vs non-linear