Question

Certain private water utilities in South Carolina charge a variable rate for the drinking water they provide to residences. One customer's bills over a 23-month period were used to fit a linear regression in an attempt to predict charges on future bills according to gallons consumed. The resulting regression equation is ŷ = 23.2 + 7.67x, where x is the amount of water used, in thousands of gallons and ŷ is the predicted bill amount in dollars. Which of these choices are a correct statement resulting from this regression line?

-On average, the bill amount increased by 7.67 dollars for each additional thousand gallons consumed. each additional dollar added to the bill
-On average, the amount consumed increased by 23.2 thousand gallons for consumed increased by 7.67 thousand gallons for each additional dollar added to the billamount.
-On average, the amount
-On average, the bill amount increased by 23.2 dollars for each additional thousand gallons consumed

Answer 1

On average, the bill amount increased by 7.67 dollars for each additional thousand gallons consumed.

Step-by-step explanation:

The correct statement resulting from this regression line is: On average, the bill amount increased by 7.67 dollars for each additional thousand gallons consumed.

The regression equation ŷ = 23.2 + 7.67x indicates that the coefficient of x, which represents the amount of water used in thousands of gallons, is 7.67.

This means that for each additional thousand gallons consumed, the predicted bill amount increases by 7.67 dollars.