Gas consumption. In Southern European countries, gas is one of the main sources of energy used. An
Question:
Gas consumption. In Southern European countries, gas is one of the main sources of energy used. An article in Neural Computing and Applications (Vol. 32, 2020) forecast the sales and returns of liquefied petroleum gas (LPG) cylinders’ business in Portugal. In Portugal, 60% of the gas is consumed for heating water for domestic usage, from which 65% comes from LPG cylinders. Therefore, whenever the outside temperature decreases, there is an increase in gas consumption. One of the models fit to the data collected on propane national sales (tons) (y) based on the change of temperature (x) was the simple linear regression model, E1y2 = b0 + b1x. The regression yielded the following results: yn = 65,195.0383 - 561.9096x, r2 = .3977.
a. Give a practical interpretation of the coefficient of determination, r2 .
b. Compute the value of the coefficient of correlation, r, from the value of r2 . Is the value of r positive or negative? Why?
Step by Step Answer:
Statistics For Business And Economics
ISBN: 9781292413396
14th Global Edition
Authors: James McClave, P. Benson, Terry Sincich