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In your 1st position as a Finance manager you have been given responsibility for decreasing use of residential heating fuel in state. Choose one of three legislative proposals to accomplish this target
a. Tax residential heating fuel that would raise the price to $2.00 per gallon;b. Offer a subsidy on natural gas that would reduce the net price of natural gas by $1 per cubic foot.c. Impose a tax on electricity that effectively raises its price by $5 per KWH.
The following analysis is given to you to assist you in selecting the best strategy
Summary of Regression OutputCoefficient Standard ErrorIntercept 136.96 43.29Price of residential Fuel -96.69 29.09Price of Natural Gas 43.88 9.17Price of Electricity -11.92 8.35Income -0.05 0.36
Based upon the regression output, rank the three possible alternatives and justify your ranking
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