The Actuarial Department of an insurance company was assignedthe task of determi

The Actuarial Department of an insurance company was assignedthe task of determining the relationship between the distance to afire station and the amount of damage to a house. This is onefactor that is utilized in determining the cost of insurance for ahome owner. A sample of 35 claims was selected from last year. Whenthe analysis was completed the following regression equation wasthe result.(X is the distance to a fire station and Y is the amount of damagein thousands of dollars)Y = 11.65 + 5.12XIf a house was 10 miles from the fire station what would be thebest estimate of the cost of damages to the house?A. There is a direct relationship but it is weak.B. For every mile that the house is from the fire station there isan 11.65 increase in cost.C. For every mile that the house is from the fire station thedamages to the house will increase by the factor 5.12.D. The damages to a house that is 10 miles from a fire stationwould be about $53000.