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Regression analysis of effective heating area.

A consumer buying cooperative tested the effective heating area of 20 different electric space heaters with different wattages. Here are the results.

Heater Wattage Area
1 1,500 205
2 750 70
3 1,500 199
4 1,250 151
5 1,250 181
6 1,250 217
7 1,000 94
8 2,000 298
9 1,000 135
10 1,500 211
11 1,250 116
12 500 72
13 500 82
14 1,500 206
15 2,000 245
16 1,500 219
17 750 63
18 1,500 200
19 1,250 151
20 500 44

a. Compute the correlation between the wattage and heating area. Is there a direct or an indirect relationship?
b. Conduct a test of hypothesis to determine if it is reasonable that the coefficient is greater than zero. Use the .05 significance level.
c. Develop the regression equation for effective heating based on wattage.
d. Which heater looks like the "best buy" based on the size of the residual?

See attached file for full problem description.

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Solution Summary

The solution gives the complete details of estimating the effective heating area based on wattage. Regression coefficients, scatter diagram, regression model and R square value are given with interpretations.

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