# This program produces the output and tables for
# Insurance Innovation Example, NKNW
# Objective:
# 1. Create indicator variables
# 2. Comparison of two simple linear regression models
#    by combining into one glm
# Created by C. Andy Tsao. 060508

t<-matrix(scan("CH11TA01.DAT"),ncol=3,byrow=T)
dt<-data.frame(y=t[,1],x1=t[,2],firm=t[,3])
attach(dt)  # Default dt data.frame

# Load needed package if you haven't done so

summary(dt); plot(dt);
# pairs(dt)
nf<-2*firm;
x2<-as.factor(nf);
mmr<-lm(y~x1*nf);summary(mmr)
mmf<-lm(y~x1*x2);summary(mmf)
plot(x1,y); plot(x2,y);
coplot(y~x1|x2)



par(mfrow=c(2,2));