A power company would like to predict the monthly heating bil for a household in

Question

A power company would like to predict the monthly heating bil for a household in a specific county during tho month of January A random Coefficients Intercept 656.2091 00947 2.1826 Temp 10 0648 sample of households in the county was selected and their January heating bill recorded along with the variables shown below. Use the regresion output shown to the right to complete parts a and b SF Age the square footage of the house Age: the age of the current heating system in years Temp the thermostat setting in degrees Fahrenheit, during the day a. Interpret the meaning of all three regression coefients, Select the correct choice below and f necessary Rl in the answer boxes within your choice Type integers or decimals. Type exact answers.) Each addlional square fot decreases the monthly heating bil by sEach additional year decreases te monthy heating bil by s) Each addional degree decreases the monthly heating bill by o B. Eac h adional square foo increases the monthly heating bilbEach additional year increases the monthly heating bill y s1 Each additional degree increases the monthly heating bil by There is no meaningful interpretation of the regression coefficients for this applcation ° C. b. Predict the average January heating bill for a household with 2,850 square feet, a heating system that the day is seven years old, and a thermostat set to 73 degrees during The average heating bill would be Round to the nearest cent as needed.)

Explanation / Answer

Answer

(1) It is clear from the output table that the regression coefficient of SF, Age and Temp are all positive, which means that each one of the three variables increasing the average monthly heating bill.

so, only B is correct as it is showing all positive change in monthly heating bill based on the three variables

we can write

"Each additional square foot increases the monthly heating bill by $0.0947. Each additional year increases the monthly heating bill by $2.1826. Each addition degree of temperature increases the monthly heating bill by $10.0648"

(B) we have the regression equation

Monthly heating bill = -656.2091 + 0.0947*SF + 2.1826*Age + 10.0648*Temp.

setting SF= 2850, age = 7 year and temp = 73 degrees

we get

Monthly heating bill = -656.2091 + 0.0947*2850 + 2.1826*7 + 10.0648*73 = $363.69

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.