The file 'Oil usage.xlsx

customers recent with the following variables:

OilUsage: The oil consumption amounts in gallons for 40 customers.

DegreeDays: The number of degree-days since the last oil fill for 40 customers.

HomeFactor: An assessment of the home type of each of the 40 customers (levels={1,2,3,4,5}).

NumberPeople: The number of people residing in the home of each of the 40 customers.

We built Model A, B, and C in Assignment 4. Use StatTools to conduct the statistical analysis asked below.

Part D - Nonlinear Regression

Build an exponential model by replacing OilUsage with the logarithmic transformation of OilUsage in Model C. Let us call this model Model D. Create three plots: the residual plot, the scatter plot of fit vs. log(OilUsage), and the scatter plot of fitted value of OilUsage vs. actual OilUsage (not log(OilUsage)). Recall that for our purposes, "log" refers to natural logarithms.

1. Include the StatTools regression output as Exhibit D. Copy and paste the regression output, and the plots. Write out the estimated regression equation (copy and paste the equation from StatTools report).

2. Provide an economic interpretation of the coefficient of NumberPeople.

3. Estimate the oil consumption of a customer with DegreeDays =380, NumberPeople =4, HomeFactor = 1.

4. Compare the performance of two models (Model C and Model D). Which model will you use to estimate the oil consumption? Explain why or why not use the logarithmic transformation of OilUsage.

link to data https://docs.google.com/spreadsheets/d/1L80oLdLZ7r9OnCJPMoi08j6Gi_gHRMR-/edit?usp=share_link&ouid=110469295481558893940&rtpof=true&sd=true