A Random Sample of Records of Electricity Usage of Homes $\hat{\text { usage }} = 1218 + 0.3$

question 5

Multiple Choice

A random sample of records of electricity usage of homes in the month of July gives the amount of electricity used and size (in square feet) of 135 homes.A regression was done to predict the amount of electricity used (in kilowatt-hours) from size.The residuals plot indicated that a linear model is appropriate.The model is $\hat{\text { usage }} = 1218 + 0.3$ size.What would a negative residual mean for people living in a house that is 2495 square feet?

• A)They are using more electricity than expected.
• B)Their house is bigger than expected.
• C)Their house is smaller than expected.
• D)They are using the least amount of electricity of all of the houses sampled.
• E)They are using less electricity than expected.

---

Definitions:

Revenue Accounts

Accounts that track the income generated from the sale of goods or services before any expenses are subtracted.