Dupree
Fuels Company is facing a difficult problem. Dupree sells heating oil to
residential...

Question

Dupree
Fuels Company is facing a difficult problem. Dupree sells heating oil to
residential customers, and given the amount of competition in the industry,
both from other home heating oil suppliers and from electrical and natural gas
utilities, the price of oil supplied and the level of service are critical in
determining a company s success. Unlike electric and natural gas customers, oil
customers are exposed to the risk of running out of fuel. Home heating
suppliers have to guarantee that the customer's oil tank will not be allowed to
run dry. Beyond the cost of the oil, Dupree is concerned about the perceived
reliability of his service if a customer is allowed to run of oil.Need:

Multiple R
R-Square
Adjusted R
Square
Standard of
Error

ANOVA Table
 Source
 Explained
 Unexplained

Regression
Coefficients Coefficient / StdErr
/ t-value / p-value

David · Accepted Answer

Dupree sells heating oil to residential customers. We want to estimate the usage of heating oil for a family using some of the characteristics related to usages of heating oil. For this purpose, oil usage is considered as the response variable. The predictors are degree days, home index and number of people. The scatter plots are presented below. Then a regression equation is estimated and presented.
Looking at these scatter plots, it can be said that degree days and home index are positively associated with oil usage whereas number of people is not significantly associated with oil usage. These indicate that usages of oil increases with increases in degree days and home index.  
	SUMMARY OUTPUT
	
	
	Regression Statistics
	Multiple R
	0.885464
	R Square
	0.784046
	Adjusted R Square
	0.76605
	Standard Error
	85.4675
	Observations
	40
	ANOVA
	
	
	
	
	
	 
	df
	SS
	MS
	F
	Significance F
	Regression
	3
	954738.9
	318246.

Dupree Fuels Company is facing a difficult problem. Dupree sells heating oil to residential customers, and given the amount of competition in the industry, both from other home heating oil suppliers...

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