The Following Regression Output Was Generated Based on a Sample

question 10

Multiple Choice

The following regression output was generated based on a sample of utility customers. The dependent variable was the dollar amount of the monthly bill and the independent variable was the size of the house in square feet. Based on this regression output, which of the following statements is not true?

• A) The number of square feet in the house explains only about 2 percent of the variation in the monthly power bill.
• B) At an alpha level equal to 0.05, there is no basis for rejecting the hypothesis that the slope coefficient is equal to zero.
• C) The average increase in the monthly power bill is about 66.4 for each additional square foot of space in the house.
• D) The correlation of the monthly power bill with the square footage of the house is 0.149

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