Question

all please!!

1. The following regressio n equation is used to predict the amount of an electrical bill from the average temperature (in Fahrenheit) of a given month: 55.1- 0.214. a) Which variable is the explanatory variable and which variable is the response variable? (b) Interpret the slope in context of the problem. (c) If the monthly average temperature increases 10 degrees, how much does the predicted bill drop? (d) What is the predicted bill when the average temperature is 10 degrees Fahrenheit? (e) What is the predicted electric bill when the average monthly temperature is 60 degrees Fahren- heit? (f) Suppose that the actual electric bill was $38 for the month when the temperature was 60 degrees. Compute the residual.

Answer 1

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g) Residual value we calculated in question (f) is negative. The negative value implies that the data point lies below the regression line. It is less than the predicted value which is good for the bill payer.

h) I will prefer the negative residual because the bill will be less than the predicted value and I have to pay less than the predicted bill.

i) R2 is a determines the goodness of fit of a model. Since R2 of this model is just 43.3%, our actual values will be too much different than the actual ones. There will be too much deviation between the actual and predicted value.