Question

Home electricity usage is measured in kilowatt-hours (kWh). Using data from the actual energy usage and monthly electric bills, the regression line that best approximated this information was found to be y = .15x + 9.08 where x represents the number of kWh and y is the monthly bill amount in dollars.

(a) Interpret the y-intercept in the context of this problem.

(b) Interpret the slope in the context of this problem.

(b) To the nearest cent, how much is added to the bill for every 1 kWh of electricity used?

(c) Suppose a customer decides to install a dishwasher, The model she chooses will use approximately 15 kWh every month. Predict the change she can expect to see on her monthly electric bill.

(d) During a hot and humid summer, a person predicted that they would be using 1000 kWh for the month of August. How much should this person budget to pay their electricity bill for that month?

Answer 1