Question
Dancer Company has noticed that utility bills are substantially higher when the average monthly temperature is colder. The only thing in the shop that uses
Dancer Company has noticed that utility bills are substantially higher when the average monthly temperature is colder. The only thing in the shop that uses natural gas is the furnace. Because of prevailing low temperatures, the furnace is used every month of the year (though less in the summer months and very little in August). Everything else in the shop runs on electricity, and electricity use is fairly constant throughout the year. For a year, Dancer has been recording the average daily temperature and the cost of its monthly utility bills for natural gas and electricity
Month degree Fahrenheit Utility Cost
January 31 1,760
Feb 41 1,629
March 43 543
April 44 410
May 46 275
June 50 233
July 53 220
Aug 60 210
Sept 50 305
Oct 40 530
Nov 30 750
Dec 10 870
Using Excel find the regression equation for estimating the cost of utilities. You may calculate the simple linear regression from the charting function, the Excel formulas, or the regression function in the analysis toolpak.
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