52. The cost of producing power per kilowatt hour is a function of the load factor and the cost of coal in cents per million Btu. The following data were obtained from 12 mills.

(a) Estimate the relationship.

(b) Test the hypothesis that the coefficient of the load factor is equal to 0.

(c) Determine a 95 percent prediction interval for the power cost when the load factor is 85 and the coal cost is 20.

Transcribed Image Text:

Load Factor (in percent) Cost of Power Coal Cost 84 14 4.1 81 16 4.4 73 22 5.6 74 24 5.1 67 20 5.0 87 29 5.3 77 26 5.4 76 15 4.8 69 29 6.1 82 24 5.5 90 25 4.7 88 13 3.9