The ScamMore Energy Company is attempting to predict natural gas consumption for the month of January.A random sample of 50 homes was used to fit a regression of gas usage (in CCF)using as predictors Temperature = the thermostat setting (degrees Fahrenheit)and Occupants = the number of household occupants.They obtained the following results: In testing each coefficient for a significant difference from zero (two-tailed test at α = .10),which is the most reasonable conclusion about the predictors?
A)Temperature is highly significant;Occupants is barely significant.
B)Temperature is not significant;Occupants is significant.
C)Temperature is less significant than Occupants.
D)Temperature is significant;Occupants is not significant.

Question

The ScamMore Energy Company is attempting to predict natural gas consumption for the month of January.A random sample of 50 homes was used to fit a regression of gas usage (in CCF)using as predictors Temperature = the thermostat setting (degrees Fahrenheit)and Occupants = the number of household occupants.They obtained the following results:  In testing each coefficient for a significant difference from zero (two-tailed test at α = .10),which is the most reasonable conclusion about the predictors?
A)Temperature is highly significant;Occupants is barely significant. 
B)Temperature is not significant;Occupants is significant. 
C)Temperature is less significant than Occupants. 
D)Temperature is significant;Occupants is not significant.

Quizplus · Accepted Answer

According to the results, the p-value for Temperature is less than 0.10, indicating that it is highly significant, while the p-value for Occupants is slightly greater than 0.10, indicating it is barely significant. Therefore, the most reasonable conclusion is that Temperature is highly significant while Occupants is barely significant.

The ScamMore Energy Company Is Attempting to Predict Natural Gas