Let x be the size of a house (in square feet) and y be the amount of natural gas

Question

Let x be the size of a house (in square feet) and y be the amount of natural gas used (therms) during a specified period. Suppose that for a particular community, x and y are related according to the simple linear regression model with the following values. beta = slope of population regression line = 0.015 alpha = y intercept of population regression line = -4 (a) What is the equation of the population regression line? y = b) What is the mean value of gas usage for houses with 2200 sq. ft. of space? c) What is the average change in usage associated with a 1 sq. ft. increase in size? (d) What is the average change in usage associated with a 100 sq. ft. increase in size? You may need to use the appropriate table in Appendix A to answer this question.

Explanation / Answer

a)

Equation is

y= slope*x + y-intercept

=0.015x -4

b)

plug in x =2200

y= 0.015(2200) -4

=29

c)

which is the slope 0.015

d)

100 *0.015 = 1.5

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