Small businesses must track every expense A flower shop owner
Small businesses must track every expense. A flower shop owner tracked her costs for heating and related it to the average daily Fahrenheit temperature, finding the model Cost = 133 – 2.13 Temp. The residuals plot for her data is shown.
a) Interpret the slope of the line in this context.
b) Interpret the y- intercept of the line in this context.
c) During months when the temperature stays around freezing, would you expect cost predictions based on this model to be accurate, too low, or too high? Explain.
d) What heating cost does the model predict for a month that averages 10°?
e) During one of the months on which the model was based, the temperature did average 10°. What were the actual heating costs for that month?
f) Do you think the home owner should use this model? Explain.
g) Would this model be more successful if the temperature were expressed in degrees Celsius? Explain.
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