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    Multiple Regression

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    Cellulon, a manufacturer of a home insulation, wants to develop guidelines for builders and consumers regarding the effects (1) of the thickness of the insulation in the attic of a home and (2) of the outdoor temperature on natural gas consumption. In the laboratory they varied the insulation thickness and temperature. A few of the findings are:

    Monthly Natural Gas Consumption (cubic feet), Y
    Thickness of Insulation (inches) X1
    Outdoor Temperature (F) X2
    30.3 6 40
    26.9 13 40
    22.1 8 49

    a. How much natural gas can homeowners expect to use per month if they install 6 inches of insulation and the outdoor temperature is 40 degrees F?
    b. What effect would installing 7 inches of insulation instead of 6 have on the monthly natural gas consumption (assuming the outdoor temperature remains at 40 degrees F)?
    c. Why are the regression coefficients b1 and b2 negative? Is this logical?

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    Solution Summary

    The solution explains the questions in a good amount of detail. It can be easily understood by anyone with a basic understanding of the concepts. The attachment to the solution does a good job of explaining in a very easy to understand way. The word document provides an Excel output with the regression equation. Overall, a good response.