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    Regression Equation for Cellulon

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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:

    Please see the attached document for the table.

    On the basis of the sample results, the regression equation is:
    Y_ _ 62.65 _ 1.86X1 _ 0.52X2

    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 Preview

    (a) The given the regression equation
    Y = 62.65 - 1.86 X1 - 0.52 X2

    The expected natural gas consumption for home owners per month if they install 6 inches of insulation and outdoor temperature is 40 degrees F, is given by
    Y = 62.65 - 1.86 ...

    Solution Summary

    This solution outlines the expected natural gas consumption for homeowners when various thicknesses of insulation are installed.