In 2016, the average monthly residential natural gas bill for Black Hills Energy customers in Cheyenne, Wyoming,

Question:

In 2016, the average monthly residential natural gas bill for Black Hills Energy customers in Cheyenne, Wyoming, is $67.95 (Wyoming Public Service Commission website). How is the monthly average gas bill for a Cheyenne home related to the square footage, number of rooms, and age of the home? The following data show the average monthly bill over the past year, square footage, number of rooms, and age for a sample of 20 Cheyenne homes. 

Average Monthly Gas Bill for Last Year Numer of Rooms Age Square Footage S70.20 16 2537 6 $81.33 $45.86 $59.21 2 3437 8 27 976 6 11 1713 7 $117.88 16 3979 11 $57.78 $47.01 $52.89 $32.90 $67.04 $76.76 $60.40 $44.07 $26.68 $62.70 $45.37 $38.09 $45.31 $52.45 $96.11 1328 7


a. Develop an estimated regression equation that can be used to predict a residence’s average monthly gas bill for last year given its age. 

b. Develop an estimated regression equation that can be used to predict a residence’s average monthly gas bill for last year given its age, square footage, and number of rooms. 

c. At the .05 level of significance, test whether the two independent variables added in part (b), the square footage and the number of rooms, contribute significantly to the estimated regression equation developed in part (a).

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  answer-question

Modern Business Statistics With Microsoft Excel

ISBN: 9781337115186

6th Edition

Authors: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran

Question Posted: