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I have a database about claims at auto insurance. I can do the math and get Frequency, Severity, Sinistrality. I need to know if cars with automatic transmission have a higher propensity to accidents than cars with manual transmission.

Some ideas I have:

  1. Comparing frecuencies among transmission and coverages (descriptive)
  2. An hypothesis testing in order to know if there's a difference between frequencies (as populations, but im not sure what kind of hypothesis will be appropriate)
  3. A logistic regression, where Y=1 if the car had a claim, 0 if not. Check if "transmission" has a parameter that differs from zero.

Any suggestion? am I right with my ideas?

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  • $\begingroup$ I would go (as a start) with the logistic regression. Without more details from you it is difficult to say more. $\endgroup$ – kjetil b halvorsen May 16 at 7:29

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