Certain private water utilities in South Carolina charge a variable rate for the drinking water they provide to residences. One customer's bills over a 23-month period were used to fit a linear regression in an attempt to predict charges on future bills according to gallons consumed. The resulting regression equation is

Bill Amount = 23.2 + (7.67 x Thousand Gallons)

Which of the following is a correct statement resulting from this regression line?

a) On average, the gallons consumed increase by 23.2 thousand gallons for each additional dollar added to the bill amount.
b) On average, the bill amount increases by 7.67 dollars for each additional thousand gallons consumed.
c) On average, the gallons consumed increase by 7.67 thousand gallons for each additional dollar added to the bill amount.
d) On average, the bill amount increases by 23.2 dollars for each additional thousand gallons consumed.

b) On average, the bill amount increases by 7.67 dollars for each additional thousand gallons consumed.

So you better start filling up those swimming pools if you want to see your bill skyrocket!

b) On average, the bill amount increases by 7.67 dollars for each additional thousand gallons consumed.

The correct statement resulting from the regression line is:

b) On average, the bill amount increases by 7.67 dollars for each additional thousand gallons consumed.

To understand how this statement was derived from the regression equation, let's break it down:

The regression equation, Bill Amount = 23.2 + (7.67 x Thousand Gallons), tells us how the bill amount is related to the number of thousand gallons consumed.

The coefficient in front of "Thousand Gallons" is 7.67, which represents the change in the bill amount for every additional thousand gallons consumed. So, for each extra thousand gallons, the bill amount increases by 7.67 dollars.

Hence, option b) is the correct statement based on the regression line.