MA207-B Spring 2008 Regression Modelling Project - Problem 3
A facilities manager is considering installing flow restrictors in the shower heads in a dormitory to reduce the consumption of natural gas, and wants to estimate the potential savings. Industry data indicates that the flow restrictor will reduce the number of gallons used by 35 percent. Records are available that contain gallons of water used and CCF of natural gas used on a daily basis for 120 days when classes are in session.
Use the data in your comma delimited file to construct a regression model.
You should answer the questions on the assignment page that apply to all problems.
For this specific problem, answer the following questions:
- How would you interpret the slope of the regression line in this problem?
- How would you interpret the intercept of the regression line in this problem?
- Were there any outliers or questionable data points? If so, how did you handle them?
- Did you use a log transform in this model? If so, explain why you chose to use a transform.
- If number of gallons of hot water per day is reduced by 35 percent as claimed, how many CCF will be saved on an average day?