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Question: Cellulon, a manufacturer of home insulation, wants to develop guidelines for builders and consume…



Cellulon, a manufacturer of home insulation, wants to develop
guidelines for builders and consumers on how the thickness of the
insulation in the attic of a home and the outdoor temperature
affect natural gas consumption. In the laboratory, it varied the
insulation thickness and temperature. A few of the findings
are:

Monthly Natural Gas Consumption (cubic feet), Thickness of Insulation (inches), Outdoor Temperature (ºF),
y x1 x2
30.3 6 40
26.9 12 40
22.1 8 49

On the basis of the sample results, the regression equation
is:

yˆ y⁢^⁢  = 62.65 – 1.86x1 –
0.52x2

1. 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? (Round your answer to 2
decimal places.)

2. 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)?
(Round your answers to 2 decimal places.)

3. Why are the regression coefficients
b1 and b2 negative? Is this
logical?

  

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