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

The p-value for the coefficient of Temperature is very small (< .001), indicating high significance, while the p-value for the coefficient of Occupants is .08, barely meeting the threshold for significance at α = .10. Therefore, it is reasonable to conclude that Temperature is highly significant, while Occupants is only marginally significant.

The ScamMore Energy Company Is Attempting to Predict Natural Gas