Bob White is conducting research on monthly expenses for medical care, including over the counter medicine. His dependent variable is monthly expenses for medical care while his independent variables are number of family members and insurance type (government funded, private insurance and other). He has coded insurance type as the following: X2Regression Statistics
Multiple R 0.8590
R Square 0.7379
Adjusted R Square 0.7182
Standard Error 952.3605
Observations 18
a. What is the prediction equation?

b. Based on the F-test, is this a good model for explaining monthly expenses?

c. What percent of the variation in medical expenses is explained by the independent variables?

d. Based on his model, what are the predicted monthly expenses for a family of four with private insurance?

e. Based on his model, what are the predicted monthly expenses for a family of two with government funded insurance?