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 18 households in the county were selected and their January heating bill recorded. This data is shown in the table below along with square footage of the house (SF), the age of the heating system in years (Age,) and the type of heating system (heat pump =1 or natural gas = 2). Household Bill SF Age Type 1 $255 2,070 7 Natural Gas 2 $286 1,909 17 Natural Gas 3 $255 2,070 7 Natural Gas 4 $300 2,307 22 Natural Gas 5 $305 3,021 5 Natural Gas 6 $317 2,683 14 Natural Gas 7 $321 1,511 8 Natural Gas 8 $321 2,836 3 Natural Gas 9 $339 2,553 20 Natural Gas 10 $349 2,497 11 Natural Gas 11 $369 2,103 12 Heat pump 12 $374 2,486 18 Heat pump 13 $381 2,279 19 Heat pump 14 $413 2,477 17 Heat pump 15 $419 3,218 11 Heat pump 16 $441 3,080 8 Heat pump 17 $522 2,507 20 Heat pump 18 $560 3,517 18 Heat pump Determine and interpret the meaning of the regression coefficients for the heating bill model.
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 18 households in the county were selected and their January heating bill recorded. This data is shown in the table below along with square footage of the house (SF), the age of the heating system in years (Age,) and the type of heating system (heat pump =1 or natural gas = 2).
|
Household |
Bill |
SF |
Age |
Type |
|
1 |
$255 |
2,070 |
7 |
Natural Gas |
|
2 |
$286 |
1,909 |
17 |
Natural Gas |
|
3 |
$255 |
2,070 |
7 |
Natural Gas |
|
4 |
$300 |
2,307 |
22 |
Natural Gas |
|
5 |
$305 |
3,021 |
5 |
Natural Gas |
|
6 |
$317 |
2,683 |
14 |
Natural Gas |
|
7 |
$321 |
1,511 |
8 |
Natural Gas |
|
8 |
$321 |
2,836 |
3 |
Natural Gas |
|
9 |
$339 |
2,553 |
20 |
Natural Gas |
|
10 |
$349 |
2,497 |
11 |
Natural Gas |
|
11 |
$369 |
2,103 |
12 |
Heat pump |
|
12 |
$374 |
2,486 |
18 |
Heat pump |
|
13 |
$381 |
2,279 |
19 |
Heat pump |
|
14 |
$413 |
2,477 |
17 |
Heat pump |
|
15 |
$419 |
3,218 |
11 |
Heat pump |
|
16 |
$441 |
3,080 |
8 |
Heat pump |
|
17 |
$522 |
2,507 |
20 |
Heat pump |
|
18 |
$560 |
3,517 |
18 |
Heat pump |
Determine and interpret the meaning of the regression coefficients for the heating bill model.
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