Question 10) While attempting to measure its risk exposure for the upcoming year, an insurance company notices a trend between the age of a customer and the number of claims

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Question 10) While attempting to measure its risk exposure for the upcoming year, an insurance company notices a trend between the age of a customer and the number of claims . per year. It appears that the number of claims keep going up as customers age. After performing a regression, they find that the relationship Is (claims per year) =, 0.465'lage) + 3,833. If a customer is 32.779 years old and they make an average of 11.053 claims per year, the residual is -8.022. Interpret this residual in terms of the problem. 0 1) The age is 8.022 years larger than what we would expect 0 2) The number of claims per year is 8. 022 claims less than what we would expect. 0 3) The age is 8.022 years less than what we would expect. 4) The number of claims per year is 11.053 claims less than what we would expect. 5) The number of claims per year is 8.022 claims greater than what we would expect.