Comcast would like to develop the ability to predict the monthly cable bill for
ID: 3157969 • Letter: C
Question
Comcast would like to develop the ability to predict the
monthly cable bill for a customer. A multiple regression
model was developed using a random sample of customers
using the following independent variables:
TV: the number of televisions in the household
People: the number of people living in the household
Years: the number of years that the household has been a
Comcast customer
The following figure shows the regression output from Excel.
16 Coefficients
17 Intercept 39.3247
18 TV 11.9025
19 People 7.3994
20 Years -0.8577
a. Predict the average cable bill for a household with three televisions, with five people in residence, and six years of being a customer.
Explanation / Answer
a)
From the table, as
MonthlyBill = 39.3247 + 11.9025*TV + 7.3994*People - 0.8577*Years
As TV = 3, People = 5, Years = 6, then
MonthlyBill = 39.3247 + 11.9025*3 + 7.3994*5 - 0.8577*6 = $106.883 [ANSWER]