A statistical program is recommended. You may need to use the appropriate technology to answer this question. Suppose the average monthly residential natural gas bill in a certain town is $67.95. How is the average monthly gas bill for a home in this town related to the square footage, number of rooms, and age of the home? The following tables shows the average monthly gas bill over the past year, square footage, number of rooms, and age for a sample of 20 homes. Rooms Average Monthly Gas Bill for Last Year $70.20 $81.33 $45.86 $59.21 $117.88 $55.78 $47.01 $52.89 $32.90 $67.04 Average Monthly Gas Bill for Last Year $76.76 $60.40 $44.07 $24.68 $62.70 $45.37 $38.09 $45.31 $52.45 $98.11 Age 16 2 27 16 12 1,713 3,979 1,328 2 4 27 1,251 12 Age 645 29 2,849 1 26 20 Square Footage 2,537 3,457 13 976 22 23 827 27 Square Footage 17 1,441 2,412 900 1,386 1,299 10 2,140 542 908 1,568 1,140 6 8 6 7 10 7 6 5 4 5 Rooms 7 6 5 4 6 4 4 6 5 10 (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. (Use x, for age. Round your numerical values to four decimal places.) 9-60.4261+-0.0953x₁ (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. (Use x, for square footage and x, for number of rooms. Round your numerical values to four decimal places.) -11.2082 +0.0947x₁ +0.00575x2 +9.2679xx (c) At the 0.05 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). State the null and alternative hypotheses. Ho: ₂-₂-0 H: One or more of the parameters is not equal to zero. OH: One or more of the parameters is not equal to zero. H₂:1₂-1₂-0 Ho: P₂-1₂-0 H: One or more of the parameters is not equal to zero. OH: One or more of the parameters is not equal to zero. Find the value of the test statistic. (Round your answer to two decimal places.) 36.05 x Find the p-value. (Round your answer to four decimal places.) p-value=0.0000 Is the addition of the interaction term and the smoker variable significant? O Reject Ho- We conclude that the addition of the two independent variables are statistically significant. O Reject H. We conclude that the addition of the two independent variables are not statistically significant. Do not reject Ho We conclude that the addition of the two independent variables are statistically significant. O Do not reject Ho. We conclude that the addition of the two independent variables are not statistically significant.

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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A statistical program is recommended. You may need to use the appropriate technology to answer this question.
Suppose the average monthly residential natural gas bill in a certain town is $67.95. How is the average monthly gas bill for a home
in this town related to the square footage, number of rooms, and age of the home? The following tables shows the average monthly
gas bill over the past year, square footage, number of rooms, and age for a sample of 20 homes.
Average Monthly Gas
Bill for Last Year
$70.20
$81.33
$45.86
$59.21
$117.88
$55.78
$47.01
$52.89
$32.90
$67.04
Average Monthly Gas
Bill for Last Year
$76.76
$60.40
$44.07
$24.68
$62.70
$45.37
$38.09
$45.31
$52.45
$98.11
Age
16
2
27
12
16
2
12
29
Age
1
26
27 1,251
14
17
13
webassign.net
10
22
Square
Footage
2,537
3,457
23
976
1,713
3,979
1,328
827
20 1,299
645
2,849
Square
Footage
2,412
900
1,386
1,441
542
2,140
908
1,568
27 1,140
Rooms
6
8
6
7
10
7
6
5
4
5
Rooms
7
6
5
4
6
4
4
6
5
10
(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. (Use x, for age. Round your numerical values to four decimal places.)
-60.4261+-0.0953x1✔
(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. (Use x, for square footage and x, for number of rooms. Round your
numerical values to four decimal places.)
-11.2082 +0.0947x₁ +0.00575x2 +9.2679x3 x
(c) At the 0.05 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).
State the null and alternative hypotheses.
Ho: B₂30
H: One or more of the parameters is not equal to zero.
O Ho: One or more of the parameters is not equal to zero.
H₂: P₂P₂=0
Ho: P₂ =B₂=0
H₂: One or more of the parameters is not equal to zero.
OH: One or more of the parameters is not equal to zero.
H₂: P₁-P₂=0
Find the value of the test statistic. (Round your answer to two decimal places.)
36.05
x
Find the p-value. (Round your answer to four decimal places.)
p-value=0.0000 ✓
Is the addition of the interaction term and the smoker variable significant?
O Reject Ho. We conclude that the addition of the two independent variables are statistically significant.
O Reject Ho. We conclude that the addition of the two independent variables are not statistically significant.
Do not reject Ho. We conclude that the addition of the two independent variables are statistically significant.
Do not reject Ho. We conclude that the addition of the two independent variables are not statistically significant.
Transcribed Image Text:A statistical program is recommended. You may need to use the appropriate technology to answer this question. Suppose the average monthly residential natural gas bill in a certain town is $67.95. How is the average monthly gas bill for a home in this town related to the square footage, number of rooms, and age of the home? The following tables shows the average monthly gas bill over the past year, square footage, number of rooms, and age for a sample of 20 homes. Average Monthly Gas Bill for Last Year $70.20 $81.33 $45.86 $59.21 $117.88 $55.78 $47.01 $52.89 $32.90 $67.04 Average Monthly Gas Bill for Last Year $76.76 $60.40 $44.07 $24.68 $62.70 $45.37 $38.09 $45.31 $52.45 $98.11 Age 16 2 27 12 16 2 12 29 Age 1 26 27 1,251 14 17 13 webassign.net 10 22 Square Footage 2,537 3,457 23 976 1,713 3,979 1,328 827 20 1,299 645 2,849 Square Footage 2,412 900 1,386 1,441 542 2,140 908 1,568 27 1,140 Rooms 6 8 6 7 10 7 6 5 4 5 Rooms 7 6 5 4 6 4 4 6 5 10 (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. (Use x, for age. Round your numerical values to four decimal places.) -60.4261+-0.0953x1✔ (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. (Use x, for square footage and x, for number of rooms. Round your numerical values to four decimal places.) -11.2082 +0.0947x₁ +0.00575x2 +9.2679x3 x (c) At the 0.05 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). State the null and alternative hypotheses. Ho: B₂30 H: One or more of the parameters is not equal to zero. O Ho: One or more of the parameters is not equal to zero. H₂: P₂P₂=0 Ho: P₂ =B₂=0 H₂: One or more of the parameters is not equal to zero. OH: One or more of the parameters is not equal to zero. H₂: P₁-P₂=0 Find the value of the test statistic. (Round your answer to two decimal places.) 36.05 x Find the p-value. (Round your answer to four decimal places.) p-value=0.0000 ✓ Is the addition of the interaction term and the smoker variable significant? O Reject Ho. We conclude that the addition of the two independent variables are statistically significant. O Reject Ho. We conclude that the addition of the two independent variables are not statistically significant. Do not reject Ho. We conclude that the addition of the two independent variables are statistically significant. Do not reject Ho. We conclude that the addition of the two independent variables are not statistically significant.
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