Question

An air conditioning and heating repair firm conducted a study to determine if the average outside temperature could be used to predict the cost of an electric bill for homes during the winter months in Houston, Texas. The resulting regression equation was: Y = 227.19 - 1.45X, where Y = monthly cost, X = average outside air temperature. If the temperature averaged 75 degrees during December, what is the forecasted cost of December's electric bill? Round the results to 2 decimals.

Group of answer choices

a) 227.19

b) 157.59

c) 335.94

d) 118.44

Answer 1

The regression equation was :

Y = 227.19 - 1.45X

Where, Y = monthly cost

X = Average outside air temperature

Now we are given that, the average temperature (X) = 75 degrees.

We need to find the forecasted cost of December's electric bill i.e, Y.

Y = 227.19 - (1.45*75) = 118.44

Therefore, the correct option will be

(d) 118.44

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