# Multiple Regression Analysis

See the attached file.

Municipalities and states have been asked by the Department of Energy to assess their energy requirements for each of the alternative fuels. In particular, they have decided to focus initially on natural gas, given the enormity of U.S. reserves and its relative cleanliness. Following is the available data and variables on fuel consumption for selected municipalities in Illinois, along with the resulting regression output.

Following is the regression output for selected municipalities in Illinois for 10 reporting periods (weeks). The dependent variable is consumption of natural gas in millions of cubic feet (Fuelcons) and the independent variables are the temperature (Temp), measured in degrees Fahrenheit, and a â??chill indexâ? (Chill), which takes values from 0 to 30, and which includes other fuel consumption determinants besides temperature, such as wind speed and direction, and cloud cover.

Standard Error =

Express your answer to three decimal places.

Interpretation of the Standard Error:

A. This tells us how much the observed fuel consumption values vary from the predicted values.

B. This tells us how much the fuel consumption will increase (in millions of cubic feet) for each drop in temperature of 1 degree (Fahrenheit), holding constant the chill index.

C. This tells us the mean fuel consumption we should expect for any specific given temperature and chill index.

D. This tells us how much we should expect the temperature to drop for each increase in chill index of 0.0939.

E. This value has no practical importance.

Please select your choice: A, B, C, D, or E

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#### Solution Summary

The solution provides step by step method for the calculation of multiple regression model. Formula for the calculation and Interpretations of the results are also included.