Delmarva Power is a utility company that would like to predict the monthly heating bill for a household in Kent County during the month of January. A random sample of households in the county was selected and their January heating bill recorded along with the following variables: SF: 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.

The following figure shows the regression output from Excel.

a. Interpret the meaning of all three regression coefficients.

b. Predict the average January heating bill for a household with 2,850 square feet, with a heating system that is nine years old, and a thermostat set to 72 degrees during the day.

Transcribed Image Text:

16 17 Intercept 18 SF 19 Age 20 Temo Coefficients 652.2924 0.0904 2.0430 06250